RealNetworks Completes Acquisition

Aug 20, 2003 12:00 PM, Editors


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RealNetworks has completed the acquisition of, creator of the Rhapsody digital music service. RealNetworks also announced that Rhapsody delivered more than 12.4 million on-demand songs to its subscribers in July, a 13% increase over June.

“We’re delighted to be completing the acquisition of today,” said Rob Glaser, CEO of RealNetworks. “We’re especially pleased that we’re bringing in both’s best-of breed Rhapsody digital music service and the world-class team that has been building Rhapsody for four years. By combining Rhapsody with other major digital music assets, such as our Internet radio and jukebox products, we are poised to create the most compelling digital music experience in the world.”

“By joining with RealNetworks, we are poised to take our business to the next level,” said Sean Ryan, now VP of music services at RealNetworks and formerly CEO of “In addition to RealNetworks’ world-class technology, RealNetworks’ broad Internet distribution fits perfectly with our existing distribution partners such as broadband operators. The continued rapid growth of Rhapsody shows that we are absolutely on the right path.”

Due to the acquisition, Rhapsody is now offered as RealOne Rhapsody at $9.95 a month subscription. The service supports more than 350,000 tracks available for on-demand listening and more than 240,000 songs available to burn to CD. At only $0.79 for any track, Rhapsody offers the lowest per-burn price available to U.S. consumers. Another feature of the service is that subscribers can build their own Internet radio stations, listen to professionally programmed stations and browse extensive music information and editorial recommendations.

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