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December 22, 2011

Rhapsody passes million US subscriber milestone

(AP) -- Digital music service Rhapsody has passed a million paying subscribers in the U.S.

The all-you-can-listen service says that keeps it in the lead as the most popular subscription service in the country. The Seattle-based company turned 10 years old this month.

Rhapsody's subscriber count hovered around 800,000 for years, but several recent developments re-ignited the business.

In August, its service began being bundled into a cellphone plan for Android phone users on carrier MetroPCS. The plan includes unlimited data, talk, text and music for $60 a month.

In October, it gained other subscribers through its purchase of from .

Still, it faces tough competition from new entrant Spotify, the Swedish music service that launched in the U.S. in July. Spotify says it has 2.5 million paying subscribers worldwide.

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