2nd\NE Quadrant: The Approval Matrix
US digital music service Rhapsody is the latest company to embrace MP3 downloads without copy restrictions.
"We're no longer competing with the iPod. We're embracing it," said Neil Smith, vice president at the firm.
Until recently, Rhapsody, which is owned by Real and MTV, had focused on a subscription service, which allowed users to stream an unlimited number of songs for between $13 (£6.50) and $15 (£7.50) a month. Rhapsody's streamed songs do not play on Apple's iPod, the world's most popular MP3 player.
The majority of MP3 tracks will cost 99 cents (50p), while albums will sell for $9.99 (£5). The shift comes as the British record industry announced that digital sales were going "from strength to strength". -- BBC