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Rhapsody Inks Distribution Deal

Listen.com has secured a major distribution channel for its music-subscription service Rhapsody, cutting a deal with high-speed Internet provider Verizon Online DSL.

The pact, to be announced Wednesday, makes Rhapsody’s on-demand streams available to Verizon’s 1.5 million DSL customers in the U.S. Service offers music from all five major record labels for a flat fee of $9.95 a month.

Verizon is the fourth Internet access provider to sign on with Listen. The netco already has distribution pacts with cable Internet providers Charter Communications and AOL Time Warner’s Road Runner, as well as satellite broadcaster DirecTV.

Listen is competing for a slice of the nascent online music market with label-backed services MusicNet and Pressplay. Neither offers music from all five majors like Rhapsody, but they do offer broader access to their music, including permanent downloads and portablility.