“RealNetworks says it has developed an iPhone application that brings the Rhapsody music service to the iPhone and iPod touch,” Arik Hesseldahl reports for BusinessWeek.

“Since Rhapsody is, by a reasonable argument, a competitor service to Apple’s own iTunes — it’s both a music subscription service and a pay-for-download store — it will be interesting to see if Apple in this case, uses a variation of the argument that has so far kept Google Voice off the iPhone: That a Rhapsody app replaces a core function of the iPhone — purchasing and listening to music — and thus shouldn’t be allowed,” Hesseldahl writes.

MacDailyNews Note: The current Rhapsody offering costs US$12.99/month.

Rhapsody on iPhone:

Direct link via YouTube here.

“In its current form, I would expect the Rhapsody app to be approved. There are already streaming music applications on the iPhone like Pandora and Last.fm and countless streaming radio applications. But Rhapsody lets you get the very song you want right now, rather than just streaming songs you like,” Hesseldahl writes. “The argument could get more complicated when the next version of the application ships. That’s the one, RealNetworks says, that will support downloading to the phone.”

Full article here.

MacDailyNews Take: Apple should fast-track the Rhapsody app approval so it can be ignored by iPhone and iPod touch users, too.

[Thanks to MacDailyNews Reader “qka” for the heads up.]