RealNetworks today confirmed the approval of its first iPhone app with the launch of Rhapsody on the App Store. The free software is the first on-demand competing music app to reach the iPhone and iPod touch in the US and gives subscribers to the $15 monthly service streaming access to the entire Rhapsody catalog over 3G or Wi-Fi. Listeners can't currently download tracks permanently but can search and add them to their libraries, create playlists and have access to Rhapsody Radio.