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Written by Ankit Chaterjee   
Monday, 04 February 2008
MONDAY, FEB 4 (News Locale) - Yahoo Inc has announced a deal with Real Networks owned Rhapsody America that will see customers of Yahoo Music Unlimited migrate to Rhapsody.

Yahoo’s head of media, Scott Moore revealed that all the accounts with Yahoo Music Unlimited will be transferred to Rhapsody service by June this year and while to start with, subscribers will continue to access music on the current payment plans, anyone wanting to remain with Rhapsody will eventually have to sign up with that service.

Users of Yahoo Music Unlimited pay around a monthly fee of $8.99 with users signing up for annual subscriptions having to pay just $5.99 a month. However Rhapsody charges over $12.99 a month. Moore revealed that Yahoo will promote Rhapsody on its site as part of the deal.

"People want to have music and consume it in lots of different forms and across different devices and platforms and we want to have a play in as many as those as we can", Moore added.

Analysts doubt whether the agreement will remain in place if Microsoft succeeds in its $44.6 billion bid to take over Yahoo. Microsoft and Real Networks have fought an anti-trust lawsuit with the former paying Real Networks $761 million as part of the settlement.

Microsoft also has its own online music store and has a number of digital music products including its Zune digital media players. However Dan Sheeran, a senior vice president at RealNetworks, expressed confidence that the deal will remain in place even if Microsoft does succeed in its takeover, stating that the conflict was two years old and both the companies have moved on.
 


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