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MTV Launches Online Music, Video Store

Earlier this year, Napster said it had more than a half-million subscribers. RealNetworks, which doesn't break out the number of Rhapsody subscribers, says it has more than 1.7 million paying customers for the service and its cadre of radio streaming plans combined.

Apple's iTunes Music Store, which doesn't offer a subscription plan, has sold more than 1 billion songs since its launch three years ago, while more than 50 million iPods have been purchased since 2001.


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)

"Whether the consumer really wants a service that's only compatible with non-iPod players is going to be the big issue," said Steve Gordon, entertainment attorney and author of "The Future of the Music Business."

Toffler acknowledges the popularity of Apple's store and player, but argues both the a la carte singles model and the subscription business are still in their infancy.

"Only 5 percent of music sales happen digitally," he said. "Hopefully, through the TV channels we have and the dot-com sites ... we can educate people about the virtues of subscriptions. It's not about selling a million singles."

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On the Net:

Urge site: http://www.urge.com

Viacom Inc.: http://www.viacom.com/

Microsoft Corp.: http://www.microsoft.com/


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© 2006 The Associated Press