RealNetworks, SanDisk teaming up

SEATTLE -- RealNetworks Inc. is teaming up with SanDisk Corp. to release a portable music player that more closely links with RealNetworks' Rhapsody online music service, in the latest attempt to take on Apple's iPod and iTunes.

Analysts see the deal, to be publicized today, as a way for SanDisk and RealNetworks to join forces against Microsoft Corp., which recently unveiled plans for its Zune portable music player and service.

Microsoft has been providing the technology that allowed services such as Rhapsody to transfer songs to portable music players without compromising the digital rights of that content. But many say they think Microsoft's plans to release the Zune service and a player made by Toshiba Corp. could make the software giant a significant competitor.

``This is kind of a way for both Rhapsody and SanDisk to say, `Well, if you're gong to compete with [us], guess what, we're gong to compete with you,' " said analyst Phil Leigh of Inside Digital Media.

Katy Gentes, product manager for Microsoft's Zune effort, said Friday that the company remains committed to the Windows Media platform it provides to partners and will continue to invest in it.

Under the deal, RealNetworks and SanDisk plan to release the Sansa Rhapsody, a portable music player based on SanDisk's e200. The companies said they expected the gadget to be available in time for the holidays but would not discuss prices.

The player will come preloaded with hundreds of songs as part of a free trial of RealNetworks' Rhapsody To Go subscription service.