RealNetworks makes moves on MusicNet rival

By Matt Whipp

Posted on 27 Feb 2003 at 12:12

RealNetworks invests in online music subscription service Listen.com.

Despite its 40 per cent stake in the MusicNet service, RealNetworks has cast its gaze farther afield with the announcement that it has taken a 'strategic minority investment' in Listen.com and its Rhapsody service.

'We're happy that RealNetworks, with its expertise in building cross-platform technology and creating digital content subscription services, is a strategic investor in our business,' said Sean Ryan, CEO, Listen.com. 'Today's investment gives us a broad range of resources that will help bring Rhapsody to an even wider consumer audience.'

Listen.com has a critically acclaimed subscription service that boasts the world's largest library of music online. As part of the deal, Listen will deliver that music using RealNetwork's RealAudio format, as opposed to Windows Media.

The companies hinted that they would be collaborating on 'future services', but the investment could equally be an easy opportunity to convert Listen's subscriber base to Real's format at a time when Listen has been struggling with staff cuts.

'We're... excited about the continued adoption of our technology platform by digital media content providers and the opportunities to expand the consumer's access to media beyond the PC,' said Richard Wolpert, executive strategic advisor, RealNetworks.