Andre Yoskowitz
1 Mar 2011 13:45
On-demand streaming music service Rhapsody has begun giving away two-month free trials to new users via a promotion with MTV.
The move has been seen as a way to prepare for Spotify's "imminent" launch in the U.S.
Spotify has signed licensing deals with EMI and Sony Music, and has allegedly come very close to signing a deal with the largest label in the world, Universal Music Group.
Because of a promotion deal signed between former owner Viacom and Rhapsody, MTV has committed $33 million to free advertising for the service and will promote it during "The Jersey Shore" and on Comedy Central.
Since spinning off from Viacom and RealNetworks, Rhapsody has regained 100,000 subscribers bringing it to an all-time peak of about 750,000 users.
Rhapsody is facing an increasingly more competitive market thanks to Pandora, Rdio, MOG, and soon Spotify.