MusicNet Ready to Supply Music, Software

MusicNet, an Internet music distributor backed by three of the major record labels, is ready to start supplying music and software to online retailers, the company is expected to announce today.

Jointly owned by AOL Time Warner Inc., Bertelsmann, EMI Recorded Music and RealNetworks, MusicNet has deals to provide music from Warner, BMG, EMI and Zomba on a wholesale basis to AOL, Real and Napster Inc. Due later this year, the MusicNet-powered services will let subscribers rent songs or listen to them through an online jukebox.

Its main rival is Pressplay, a joint venture of Sony Corp. and Universal Music Group that has deals with Yahoo and MP3.com. Pressplay was ready to roll earlier this month, but the launch was delayed while Sony and Universal negotiated for licenses from the music publishers, officials say.