MOG's Music Streaming iPhone App Is Caught In App Store Purgatory, Too

Yesterday we reported on a music-streaming iPhone application called Rdio that has been waiting for weeks to have an update approved by Apple. Now we’ve learned that this may be part of a new trend: MOG, the music portal that offers an impressive on-demand streaming music service, is also having issues with the App Store. MOG submitted its iPhone application over a month ago, and has heard nothing from Apple since. Phone calls and emails have gone unreturned. And the company is understandably getting nervous that Apple may be thinking of blocking the app.

MOG has a lot riding on its mobile applications — it just closed a new $9.5 million funding round, some of which is going toward expanding its mobile platform. At SXSW it held a press event to preview its iPhone and Android applications, and what it showcased was pretty impressive. For $10 a month, users can stream any song or album they want, and they can locally download entire albums to their phone (which will work even when they lose connectivity) in one tap.

It’s possible that Apple is concerned that MOG’s app is too good. If you listen (and pay for) a lot of music, MOG’s all-you-can-eat service can quickly pay for itself. And it makes tethering your iPhone to your PC every time you want to sync songs a thing of the past. Apple has long been been rumored to be working on its own cloud music service, especially since it acquired Lala last December, and may be worried about getting beaten to the punch. Thing is, Apple has already approved Rhapsody, which offers much of the same music streaming functionality (albeit without the full-album download button) and Spotify.

On the other hand, Apple may just be overwhelmed — it has the release of the iPhone 4 and iOS 4 just around the corner, and now has to deal with developers who are upgrading their apps in time for the new OS launch.

We’ll be keeping an eye on this to see how it develops.