New York - Viacom's MTV, RealNetworks and wireless carrier Verizon on Tuesday announced the formation of a digital music joint venture, Rhapsody America.

MTV Networks will contribute cash and a five-year note for $230 million to the venture, and hold a 49% stake, while RealNetworks will control 51% of Rhapsody America.

RealNetworks will contribute an undisclosed sum to the venture, in addition to the subscribers and licenses from its existing Rhapsody digital music service; MTV will contribute existing subscribers to its URGE digital music service.

Verizon Wireless' V CAST Music will become the mobile platform for the integrated Rhapsody service.

Michael Bloom, previously general manager of MTV's URGE, will lead Rhapsody America, which will have offices in New York, Seattle and San Francisco.

"The new Rhapsody will build on the musical curation of URGE and have the marketing power of MTV, VH1 and CMT behind it, ensuring this new platform is front and center in the hearts and minds of music lovers," said Van Toffler, president of MTV Networks Music & Logo Group.

The three companies all emphasized the marketing clout the joint venture will be afforded.

Verizon will market Rhapsody America in its U.S. stores, while MTV will market the service across its various on-air and online platforms starting next week, including integration with the Video Music Awards telecast on Sept. 9.

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