While the news of MTV Networks (NYSE: VIA) was closing its online music service Urge and merging it with RealNetworks’ (Nasdaq: RNWK) Rhapsody music service was a night old by the time executives from those companies gathered for a conference call heralding the deal, they were able to share a few additional items. However, financial terms will not be discussed until a 5 p.m. EDT conference call hosted by RealNetworks (the webcast can be accessed here). The joint venture is a new company, which also includes Verizon as its mobile distributor, and is called Rhapsody America. Starting today, Urge customers can use their existing usernames and passwords to log in to Rhapsody and enjoy access to both services. As for Urge’s previous partnership with Microsoft, during the call, Van Toffler, president of MTV Networks Music & Logo Group, said that the company is currently in talks with Microsoft.  “Urge will be available on Windows Media Player 11 until further notice,” he said. Michael Bloom, previously Urge’s GM, will head Rhapsody America, which will have offices in New York, Seattle and San Francisco.

Noting that the announcement comes in conjunction with Universal Music Group’s kickoff of its DRM-free experiment in digital sales, Rob Glaser, RealNetworks’ chairman and CEO, said that the company’s existing DRM-free music trial with UMG will carry over into Rhapsody America. “We think that 2007 is a tipping point year, where there’ll be a series of experiments and activities that lead to that market development. EMI was first, now Universal is second. Our belief is that in 2008, DRM-free will start to go mainstream,” Glaser said. More to come. Release

• MTV Closing Urge Music Service, Merging With RealNetworks’ Rhapsody
• Universal Music Group To Trial DRM-Free Music; iTunes Not Included