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WEB SERVICES Can RealNetworks Make Music With AOL, Bertelsmann?(A)
By Pete Barlas
Investor's Business Daily
RealNetworks Inc. is sharpening its phonograph needle in a bid to have the biggest jukebox on the Web.
The audio and video software company on Monday entered a pact with AOL Time Warner Inc., Bertelsmann AG and EMI Group to create a company that will sell music on the Internet.
The new company, MusicNet, will carry tunes from record companies owned by AOL, Bertelsmann and EMI. The companies operate three of the five biggest U.S. record companies. Until now, none of the three had made any big move to sell music online.
MusicNet will license its service to Web companies, such as online retailers. RealNetworks and AOL also will offer the service on their respectiveWeb sites.
The service will be available to consumers by subscription starting this summer, says Rob Glaser, RealNetworks' chief executive. The companies say they haven't yet determined the rates.
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