According to a report yesterday, MTV has struck a deal with Real Networks to merge its digital music service, which has yet to gain any real traction, with Rhapsody, the digital media service operated by Real Networks with a hope of posing some sort of challenge to category killer iTunes. The service will get a big push starting with MTV's Video Music Awards on September 9th. In case you can't tell, we're skeptical on a positive outcome for the deal. Granted, MTV's service has been bundled with Microsoft's Windows Media Player for quite some time now, and the reality is that it has had very little impact on usage to date. The fact remains they are chasing down a competitor that has 90%+ market share so going after less than 10% seems more like a pipe dream than a sound strategy.
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