RealNetworks and Microsoft will make beautiful music together
As the result of an antitrust settlement with Microsoft Corp., RealNetworks Inc. will now develop a joint-venture alliance with Microsoft that will open up new online games and music segments for Rhapsody, RealNetworks` digital music service.
The settlement calls for Microsoft to pay RealNetworks $301 million in cash and provide services over 18 months in support of RealNetworks` product development, distribution and promotional activities. Microsoft will also integrate the Rhapsody digital music service more prominently into segments of MSN.com, including the MSN homepage, MSN Music, MSN Search and MSN Messenger. “By integrating Real’s music and games services into Microsoft’s very popular MSN service, we will reach more consumers,” says RealNetworks founder and CEO Rob Glaser. "The legal chapter is being closed with an appropriate and fair outcome that sets the stage for a very productive and collaborative relationship.”
RealNetworks, No. 218 in the Internet Retailer Top 400 Guide to Retail Web Sites, filed an anti-trust complaint against Microsoft in 2003. The complaint alleged that Microsoft was using its dominant status as a software and network services provider to monopolize the emerging digital music market.
But as a result of the settlement the two companies will now cooperate on several joint venture digital music and games initiatives, says Glaser. For instance, the two companies will jointly develop and implement a search integration plan which will enable RealNetworks’ customers to use MSN search programs within RealPlayer, a software application for experiencing audio and video over the Internet.
Microsoft and RealNetworks will further collaborate on developing digital games. RealNetworks, a games developer, will create a new subscription service to be offered on MSN Games and will also develop a series of new digital games for Microsoft’s Xbox Live Arcade for Xbox 360 product line.
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