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Rhapsodic Urges

By Rick Munarriz – Updated Nov 14, 2016 at 11:20PM

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RealNetworks teams up with MTV and Verizon Wireless to rock harder.

Say hello to the music world's latest trio. RealNetworks (NASDAQ:RNWK), Viacom's (NYSE:VIA) MTV, and Verizon Wireless are teaming up to offer what they hope will be the mother of all digital music subscription services.

Sure, as far as music trios go, this group has nothing on more iconic acts like Rush, The Police, The Jimi Hendrix Experience, Green Day, or even Thompson Twins. But when three solo artists come together, it pays to notice if they can harmonize.

All three companies are established tune peddlers. RealNetworks' Rhapsody is a pioneer in this space. MTV has a killer brand, although its URGE music subscription service lags behind leaders like Rhapsody and Napster (NASDAQ:NAPS). The three-way partnership will merge URGE out of existence and into the new Rhapsody America. Verizon Wireless -- a joint venture between Verizon (NYSE:VZ) and Vodafone (NYSE:VOD) -- will help give Rhapsody America service a home in the mobile space with its V CAST music platform.

Despite the big names, there will be no egos on the tour bus. All three companies have had no problem teaming up with corporate partners in the past. They have all also been humbled by Apple (NASDAQ:AAPL), either via iTunes (Rhapsody's and URGE's humbler) or this summer's early iPhone success (sorry, Verizon Wireless).  

This won't be enough to topple Apple. You can't bring in a trio to do a quintet's job. However, just by virtue of its expanded audience, Rhapsody America is already off to a good start. As long as its ambitions are realistic -- you know, thinking in terms of just nibbling away at market share instead of niche domination -- the trio might harmonize just fine after all.

Vodafone is a pick in the Inside Value research service for value-minded investors. A free 30-day trial offer is available for this market-beating newsletter. You, the newsletter, and time to read? Now that is a rocking good trio.

Longtime Fool contributor Rick Munarriz doesn't have the urge to sign up for a digital music subscription service, though he loves his music. He does not own shares in any of the companies in this story. He is part of the Rule Breakers newsletter research team, seeking out tomorrow's ultimate growth stocks a day early. The Fool has a disclosure policy.

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Stocks Mentioned

Verizon Communications Inc. Stock Quote
Verizon Communications Inc.
VZ
$39.52 (-1.03%) $0.41
Vodafone Group Plc Stock Quote
Vodafone Group Plc
VOD
$11.97 (-3.23%) $0.40
RealNetworks, Inc. Stock Quote
RealNetworks, Inc.
RNWK
$0.70 (0.01%) $0.00
Apple Inc. Stock Quote
Apple Inc.
AAPL
$150.43 (-1.51%) $-2.31

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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