Online music service Rhapsody, struggling to nab a bigger piece of the digital music pie, has found a well-heeled partner to take on Apple: Viacom's MTV Networks. In exchange for a 49% ownership stake in Rhapsody's U.S. operations, MTV promises to spend $235 million on the site. It will also merge its little-used URGE online music service with Rhapsody. The combined service will be called Rhapsody America.
USA TODAY spoke with Rob Glaser, CEO of Rhapsody's parent company Real Networks, about the news. His answers were edited for length and clarity.
Why does Rhapsody need MTV?
GLASER: We've got to get more people to know about (us). We're like this cult band that everybody loves, but we need to go to the next level.
MTV has made lots of announcements through the years about digital media, but it's been more talk than results. How will you change that?
GLASER: We'll have ten times more (advertising) on television. We get exclusive rights to marketing with not just MTV, but its channels, like VH1 and CMT. If you go to our website today, you'll see that it's more than just TV advertising. We're going to be a big part of the MTV Video Music Awards.
Part of the announcement Tuesday was an alliance with Verizon Wireless. Will you be offering Rhapsody's on-demand streaming service on phones?
GLASER: We'll talk about that later.
How many subscribers does Rhapsody have?
GLASER: We have 2.7 million subscribers to all of Real's music properties, which also include online radio.
By Jefferson Graham