RealNetworks to Launch Europe Music Download Shop
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By Bernhard Warner, European Internet Correspondent
LONDON (Reuters) - RealNetworks Inc. (Nasdaq:RNWK - news) said on Wednesday it will bring its Rhapsody music download service to Europe in the second quarter of next year, the latest American firm aiming to cash in on Europe's emerging digital music scene. Earlier this month, Time Warner (NYSE:TWX - news) told Reuters it was in negotiations with the world's largest music labels for licenses to sell song downloads to European music fans by the second quarter of 2004.
Also in the hunt are Apple Computer Inc.'s (Nasdaq:AAPL - news) iTunes and Roxio Inc.'s (Nasdaq:ROXI - news) Napster (news - web sites), the two most recognizable brands to music download fans, which are widely expected to make their Continental debut in mid-2004.
The band of new entrants will go head-to-head with some of Europe's biggest music retailers including Britain's HMV (HMV.L) and Virgin MegaStores, plus download stores run by Microsoft's (Nasdaq:MSFT - news) MSN and Tiscali (TIS.MI).
So far, industry-backed services have proved no match for free download services such as Kazaa and Grokster, which have triggered a robust trade in free tunes. Music executives blame such services for contributing to a three-year sales drop in recorded music.
Rhapsody carries a catalog of 385,000 songs for Web streaming and more than 275,000 for permanent download of such artists as Elvis and Pink Floyd. It is now available only to U.S. customers who pay a $9.95 monthly subscription fee and an additional 79 cents per download.
A similar pricing scheme is being developed for Europe, a spokeswoman for the Seattle-based digital media firm said.
Earlier this month, Rhapsody said subscribers had streamed more than 21 million songs in September.
