By Chris Nerney on August 25, 2009 6:23 PM

RealNetworks Plans Rhapsody iPhone App, Eyes Other Mobile Platforms

Internet multimedia software veteran RealNetworks is pitching an iPhone application that would provide on-demand streaming music to subscribers of its Rhapsody online service.

Rhapsody_logo_2.jpg.gif It’s far from a done deal, as Apple must sign off on any apps for its iPhone and other mobile devices. But the RealNetworks folks are pretty excited. From the company’s official blog:

I can’t even count the number of times I’ve wanted to hear a song on my iPhone and guiltily plopped down $.99 to iTunes to please my impatient self. When I first used the Rhapsody app it seriously felt like the sun shone a little brighter that day.

Did anyone tell the RealNetworks blogger that Apple has to, you know, approve this application?

According to the Wall Street Journal, Rhapsody has had problems retaining subscribers:

RealNetworks has struggled during the economic downturn, seeing second-quarter Rhapsody churn – the rate of customer cancellations – rise as customers cut spending. Earlier this month, Rhapsody – RealNetwork’s joint venture with Viacom’s MTV Networks – laid off 9% of its staff, mostly in editorial, as it struggles to compete with other music services.

Mostly in editorial. That’s just great.

Mike Lunsford, RealNetworks’ executive vice president for strategic ventures, emphasized to the WSJ that developing services for mobile applications now is a key part of the company’s strategy:

“Without mobile apps, that (churn) will likely continue. With them, we can turn things around and keep the base static or start to grow it again.”

Lunsford said RealNetworks is considering developing applications for other mobile platforms by the end of the year, specifically citing Google’s Android and phones by Research in Motion Ltd. (maker of the BlackBerry) and Palm.