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MTV Launches Online Music, Video Store

By ALEX VEIGA
The Associated Press
Monday, May 15, 2006; 1:25 AM

LOS ANGELES -- For years, MTV Networks Inc. sat on the sidelines while Apple Computer Inc., RealNetworks Inc. and others racked up sales of music downloads. Now the cable network group that helped popularize music videos two decades ago is entering the online music fray with URGE, a new service that makes its public beta debut on Wednesday.

URGE comes integrated into the newest version of Microsoft Corp.'s Windows Media Player, which users of Microsoft's Windows will receive in coming weeks as an upgrade. Prior to that, the player upgrade will be available for download at the URGE and Microsoft Web sites.


This image released by MTV shows the webpage for URGE, the network's new music download service. For years, MTV Networks Inc. sat on the sidelines while Apple Computer Inc., RealNetworks Inc. and others racked up sales of music downloads. Now the cable network group that helped popularize music videos two decades ago is entering the online music fray with URGE, a new service that makes its public beta debut on Wednesday. (AP Photo/MTV)
This image released by MTV shows the webpage for URGE, the network's new music download service. For years, MTV Networks Inc. sat on the sidelines while Apple Computer Inc., RealNetworks Inc. and others racked up sales of music downloads. Now the cable network group that helped popularize music videos two decades ago is entering the online music fray with URGE, a new service that makes its public beta debut on Wednesday. (AP Photo/MTV) (AP)

At launch, URGE will have more than 2 million tracks, which can be purchased individually at 99 cents or as full albums starting at around $9.95.

The service also will offer unlimited downloads at a monthly rate of $9.95, or $14.95 for the ability to transfer songs to any of more than 100 compatible portable music players.

Initially, URGE will also feature streaming videos, with video downloads becoming available for purchase later this year.

URGE will also be the featured music service on Microsoft's media player, which will continue to have built-in links to several other services.

The company has begun clearing content from its vault of exclusive appearances by recording artists on staples such as "TRL" and "MTV Unplugged" for sale on URGE, said Van Toffler, president of MTV Networks Music Group.

The tie-in to MTV should also help URGE sell consumers on the upside of subscription services better than others have to date, said analyst Phil Leigh with Inside Digital Media.

"The thing that works to their advantage is they have a well-recognized brand that is popular to a demographic that is going to be receptive to purchasing digital music," Leigh said.

Still, URGE enters an online music market struggling to compete with online piracy and the dominance of Apple's iTunes Music Store and its market-leading iPod digital music player.

And like established rivals RealNetworks' Rhapsody and Napster Inc., URGE is not compatible with Apple's Macintosh computers or its market-leading iPod digital music player.

That incompatibility, combined with the availability of music on Internet file-sharing networks, has made subscription music plans a tough sell.


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© 2006 The Associated Press