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Corrected: Rhapsody Starting iPhone App Process

Correction: Our earlier report misstated the progress of Rhapsody’s iPhone app. The Rhapsody app for iPhone has not yet launched. RealNetworks (NSDQ: RNWK) announced in a company blog that it would be submitting the app to iPhone for approval this week. That doesn’t mean the app will ever launch on iPhone and, while Apple (NSDQ: AAPL) told the FCC last Friday that it approves 95 percent of apps within 14 days of being submitted, some apps take longer and some are rejected.

In Rhapsody’s favor: although Spotify, which is not a similar service reportedly has been in the process since July, subscription service Sirius XM (NSDQ: SIRI) already has an app in the iTunes store. And by going public, including a video preview of how the app is meant to work (embedded below), Rhapsody puts pressure on a company already in the spotlight with the FCC over how it deals with competitors.

Original: Finally. RealNetworks’ has launched is Rhapsody music service on iPhone tonight. The app is free, but it is a paid service, at $14.99-a-month Rhapsody To Go service. Like its online version, on demand streaming for every song, unlike some of the free services on iPhone like Pandora and Slacker. Says it has 8 million songs. Online subscribers won’t have to pay extra for the app. Next up, an Android app. Because of the price, very likely the major users would be the existing online subscribers; iPhone users, already saddled with hefty monthly bills, will surely balk at adding another $15 a month. More here.

Rhapsody on iPhone from Jamie on Vimeo.