V CAST, Rhapsody deal ... for real

Last summer's mobile music deal between MTV, RealNetworks and Verizon Wireless finally became a reality yesterday when the firms officially launched V CAST Music with Rhapsody, a mobile music service that will offer unlimited access to music on up to three compatible handsets, portable media devices and/or PCs for $14.99 per month. Additional a la carte purchases also will be available for $1.99 per download--Verizon customers who buy songs over the air may also download a DRM-free master copy to their PC.

I hope this long-awaited deal will revive consumer interest in mobile music. However, I fear that one very critical element to making this service work for the consumer--the handset--hasn't been given a big enough priority. At launch Verizon will have nine handsets that will work with the Rhapsody service. However, John Harrobin, Verizon's senior vice president of digital media and marketing, says that the forthcoming LG Chocolate 3 device will really showcase the service because it will offer one-button access to music and have a seamless set up process.

Verizon executives weren't specific about when the LG Chocolate 3 will actually launch. Harrobin only said it will be available by the end of the month. But for V CAST with Rhapsody to really be successful with consumers, Verizon is going to have to have more handsets with one-button access in their V CAST Music portfolio. Users don't want to struggle to find their tunes on their devices, they want it to be seamless and intuitive. I certainly hope the LG Chocolate 3 delivers on that promise when it launches this month.

Verizon certainly has the right foundation to make this service work for consumers. According to M:Metrics, 5.6 million, or 9.7 percent, of Verizon subscribers have listened to mobile music, which is about 23 percent above the market average. In April, 1.6 million, or 2.8 percent, of Verizon's subscriber base downloaded music, which is more than double the average.

Plus some analysts believe the subscription music model may finally find its niche in mobile music. Jupiter Research analyst Michael Gartenberg wrote that a lot of the success of V CAST with Rhapsody depends on how much time Verizon and its partners take to educate the market about the service. Education hasn't always been a strong point for wireless carriers, but hopefully V CAST with Rhapsody will offer ease of use and a compelling model that will spur the consumption of mobile music. -Sue [1]