TiVo is expected to announce a deal today with RealNetworks under which it will offer the Rhapsody subscription music service to TiVo users who subscribe directly and have their machine connected to a
broadband network--about 850,000 of TiVo's 4.2 million existing customers. It's the first step in a TiVo campaign to broaden its audio service and further differentiate itself from in-house DVR
offerings by cable and satellite providers.
Rhapsody--RealNetworks' joint venture with MTV Networks--gives subscribers access to about 4 million songs that can be played on their PCs any
time. Rhapsody's basic service costs about $13 a month, and $15 to also hear songs on certain portable music players. Users don't own the songs. If they cancel the service, the music stops and copies
stored on portable devices self-destruct.
TiVo has a lot riding on convincing consumers that it's a home entertainment service. With cable and satellite firms pushing their own DVRs, this is the
first year that TiVo lost subscriptions.
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