iPhoneMatters previously wrote about Spotify, the European based music streaming service making its way to the iPhone and is pending authorization in to the App Store but it may soon face competition from Rhapsody’s own music streaming and subscription service.

Rhapsody, known for its music streaming and subscription offerings has reportedly submitted its own iPhone App to Apple and is awaiting its release in to the App Store. The Rhapsody App will allow users access to over 6 million songs that can be streamed over EDGE/3G and WiFi. While the App may be free, users will need to pay $14.99 a month to stream content. However, Rhapsody VP, Neil Smith is confident the App will be approved and issued this statement:

“The app store is likely to be bigger than the music store some day, and not approving things for the app store is giving people a reason to say, ‘I’m not going to buy an iPhone,’”

JKontherun also gave its own opinion on why the App will be approved.

For Apple not to approve the Rhapsody music streaming App would bring further scrutiny to the App Store’s ridiculous practices of approving and denying Apps.
A video demo of the Rhapsody App is available after the jump.

Rhapsody on iPhone from Rhapsody on Vimeo.

Via: iPhone Hacks