Real Networks and Viacom’s Rhapsody will be launching a $50 million MP3 downloads business to challenge iTunes’ 70% market share, Reuters is reporting.

Digital music seller Rhapsody is launching a $50 million marketing assault on Apple’s iTunes, offering songs online and via partners including Yahoo Inc and Verizon Wireless, Rhapsody said on Monday.

The songs will be sold in MP3 format, which means users of the Rhapsody service will be able to play them on iPods.

More after the break.

After a few recent surveys, one thing is for sure. Apple’s place in the music history books are set in stone. An iPodNN report brought a recent Ipsos survey to light that showed that when it comes to music downloading, iTunes is preferred by half of the market, giving it a commanding lead over the more »