Joint venture to compete with iTunes

Viacom's MTV Networks has struck a digital music partnership with online music service RealNetworks and Verizon to compete against…

Viacom's MTV Networks has struck a digital music partnership with online music service RealNetworks and Verizon to compete against Apple's iTunes.

MTV Networks will contribute cash, a five-year note for $230 million and other assets to the joint venture, according to a RealNetworks filing with the US Securities and Exchange Commission today.

MTV will merge its digital music store Urge with RealNetworks' Rhapsody music subscription service in a joint venture called Rhapsody America.

Verizon Wireless, a venture of Verizon Communications and Vodafone Group, will become the exclusive wireless distributor for the joint venture's digital content.

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The partnership represents another attempt by tech and media companies to snatch market share from Apple, whose combination of iTunes service and iPod digital entertainment devices has been hard to beat.