On-demand music service Rhapsody will acquire competitor Napster in an effort to expand its user base, the companies have announced. Under the terms of the agreement, Rhapsody will acquire all Napster subscribers and certain other assets. Meanwhile, Best Buy, Napster’s current owner, will receive a minority stake in Rhapsody.
The “other assets” that will move over to Rhapsody include Napster’s IP portfolio. However, no mention of Napster’s label contracts or deals were made in today’s announcement. Currently, Napster has a streaming music catalog of over 15 million songs, as well as apps for the desktop, mobile and TVs. The software also provides access to streaming music radio stations, thousands of playlists, offline music, charts and more.
Rhapsody, on the other hand, boasts a catalog of 13 million songs (according to the announcement – the website says 12 million), meaning Napster subscribers will be losing access to a good number of tracks in the transition. But Rhapsody’s other offerings, including cross-platform apps, playlists and a radio feature, are similar to what Napster now includes.
The acquisition comes at a time when newer startups like Spotify, MOG and Rdio are stealing the spotlight from older brands like Napster and Rhapsody. A clue that Napster was on its way out came last week when Rhapsody was listed among the services receiving Facebook Music integration while Napster was not.
The stock-based deal will close on November 30th, says the report. Terms were not disclosed. Rhapsody has 800,000 subscribers, reportedly double that of Napster.
The Rhapsody® digital music service (www.rhapsody.com) gives subscribers unlimited on-demand access to more than eleven million songs, whether they’re listening on a PC, laptop, Internet connected home stereo or TV, MP3 player or mobile phone. It is the first and largest premium, on-demand music service in the United States. Rhapsody allows subscribers to access their music through more touch-points than any other digital music service, including mobile phones from Verizon Wireless, through Rhapsody applications on the Apple iPhone, iPod Touch,...
Napster offers the ultimate in interactive music experiences, creating better ways to discover, share, acquire and enjoy the universe of music - anytime, anywhere. The Napster service is the easiest way to find, discover and enjoy the universe of music – online, on the go and in the living room. With unlimited, on-demand access to music from a web browser, smartphone and home entertainment devices, Napster lets you enjoy music your way anytime, anywhere. The service is available at...
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