RealNetworks Set to Launch Rental Service

RealNetworks plans to launch today the first online service that rents songs from major record companies to consumers.

The RealOne Music service is powered by MusicNet, an online music-distribution service owned by Real and the parent companies of three major labels: AOL Time Warner, Bertelsmann and EMI. The service will initially offer about 100,000 songs from those companies and Zomba, the largest independent label, but not from artists signed to Universal Music Group or Sony Music, which are partners in a competing venture.

Besides the incomplete catalog, analysts say the biggest hurdle for MusicNet-based services is that their songs have to be played on the computer that downloaded them--not in cars or portable players.

Each month, RealOne Music subscribers will pay $9.95 per month to download up to 100 songs that can be played an unlimited number of times for 30 days. They’ll also be able play up to 100 songs from an online jukebox.