updated 6/19/2007 6:22:16 PM ET 2007-06-19T22:22:16

Internet music retailer Sony Connect Inc. is eliminating some positions as part of a restructuring plan to shift resources to other online services, but it intends to continue operating, the company said Tuesday.

The company denied a report that suggested the job cuts are a prelude to shutting down its music service in a matter of weeks.

Sony Connect is shifting emphasis to other network services, specifically one for users of the PlayStation game console, the company said.

Sony Connect, a unit of Sony Corp. of America, did not disclose the scope of the job cuts, but a person at the company familiar with the restructuring told The Associated Press about 20 of the 90 positions will be eliminated. The person spoke on condition of anonymity because the company has not made details on the layoffs public.

In addition to selling music downloads, Sony Connect also operates an e-book download store called Sony Reader that launched last year.

Sony Connect launched in 2004, but like other online music services, it has had a tough time competing against Apple Inc.'s iTunes Music Store, which is tied to the market-leading iPod portable player.

"They tried to do what Apple did with the iPod, but their player was never nearly popular," said music analyst Phil Leigh of Inside Digital Media.

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