Best Buy Digital Music Store to compete with Apple's iTunes Store

Best Buy has partnered with RealNetworks and SanDisk to open the Best Buy Digital Music Store to compete with Apple's iTunes Store. RealNetworks is powering the Best Buy store with its Rhapsody 4.0 music service. Both permanent song downloads and a subscription service are available. As part of the deal, Best Buy will carry and promote the SanDisk Sansa e200R Rhapsody MP3 players, which have been optimized to work seamlessly with the Best Buy Digital Music Store.

Best Buy has been carrying iPods and the announcement did not mention whether it would continue to do so in the face of the SanDisk deal. [Bill Fox]