RealNetworks Inc., MTV Networks, a division of VIACOM International, and Verizon Wireless, a joint venture of Verizon Communications and Vodafone, are teaming to create an integrated digital music service that consumers can access via PC, portable music device or mobile phone.
As part of this alliance, MTV Networks and Real Networks, No. 94 in the Internet Retailer Top 500 Guide, are forming Rhapsody America, a new company that will provide the digital music service for Real and for MTV’s music and pop culture brands in the U.S. Terms were not disclosed.
Rhapsody America was designed to unite RealNetworks’ music service and MTV’s URGE music service. Verizon Wireless’ V CAST Music will become the mobile platform for the integrated Rhapsody service. The combined services offer services similar to Apple Inc.’s iTunes and its new iPhone. Apple is No. 15 in the Internet Retailer Top 500 Guide.
Real and MTV will bring complementary strengths to Rhapsody America, Real Networks says, including MTV’s history in music programming and youth marketing savvy along with Real’s innovative technology and relationships in the consumer electronics industry. Michael Bloom, previously general manager at URGE, will lead Rhapsody America.
Rhapsody America has formed an exclusive relationship with Verizon Wireless, in which the companies will be partners in bringing digital music to consumers’ PCs and over the air to their mobile phones. Through the relationship with Verizon Wireless, Rhapsody will be fully integrated with V CAST Music, which Real expects to deliver “a superior music service across multiple consumer devices.”
Real, MTV Networks and Verizon Wireless say they will mount an aggressive advertising and promotional campaign. Verizon Wireless will market Rhapsody through its extensive network of Verizon Wireless Communications Stores nationwide when the service launches on mobile phones. Rhapsody will become the music service of choice across MTV Networks’ MTV, VH1, and CMT brands. On-air integration for the new service will begin next week and Rhapsody also will be integrated into MTV’s Video Music Awards airing live from Las Vegas on September 9.
URGE customers now can use their existing user names and passwords to log in to Rhapsody and access both services. Verizon Wireless customers already can download music instantly to their V CAST-enabled phones and transfer digital music to their phones from their PC. In the months ahead, Verizon Wireless plans to roll out functionality that sends the duplicate copy of songs purchased over the air directly to a customer’s Rhapsody account. The service also will allow transfer of subscription music from a Rhapsody account to a mobile phone.
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