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November 20, 2009

MTV Postures Towards Outright Sale or Outside Investment for Ailing Rhapsody...

The Daily Swarm | Read Full Story >


paidContent:

The relevant part: “to enable Rhapsody to operate more independently of either party. If these discussions result in a definitive agreement, RealNetworks may agree, among other things, to adjust the corporate governance and/or management structure of Rhapsody and to reallocate the ownership of Rhapsody between RealNetworks and MTVN such that RealNetworks’ percentage ownership of Rhapsody could be reduced from 51% resulting in both parties owning 50% or slightly less.” What that likely means is bringing an outside investor in the JV, if not an outright sale of the venture.

HypeBot:

Even with MTV‘s $230 million investment in Rhapsody, the music subscription and download service has failed to gain real traction. And now competitors like Napster, MOG and perhaps Rdio and Spotify are or will soon be offering stiff competition at lower price points.




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