RealNetworks Hoping To Make Music, Money With Newest Feature MusicNet Scheduled To Start AOL, EMI, Bertelsmann co-own service that lets PC users rent out songs.(INTERNET & TECHNOLOGY)

Byline: PETE BARLAS

RealNetworks Inc. is taking a step toward turning the Internet into an entertainment center with a cash register, but most analysts fear it's a small step.

Starting Tuesday, RealNetworks is set to be the first company to sell music of several major record labels directly over the Net in digital form.

Record companies have been slow to sell music directly on the Net, due to concerns over security and piracy. But the industry is trying to offset a decline in CD sales, analysts say.

Though fans have downloaded music via the Web for years, analysts wonder if there's a mainstream market yet, says Jack Ripsteen, analyst for J.P. Morgan Securities Inc.

"This is the first real major online music service, but there's a question of whether consumers will use it," he said.

RealNetworks, an audio and video software maker, will sell music provided by MusicNet.