

The music subscription hype is over and Rhapsody is feeling the hurt. Competitors like Napster, MOG, and soon to launch Spotify are putting the final strain on Rhapsody with their lower price points.
Currently, Rhapsody is a joint-venture of both RealNetworks and MTV Networks, with RealNetworks controlling the majority of the company. The issue at hand is if MTV Networks will invest further into the company or buy the entire thing out. With RealNetworks income in a steady decline, MTV Networks buyout of Rhapsody may be the only way to save this subscription service company. One thing is clear, for Rhapsody to survive into the new year the management structure will need to change.
Rhapsody launched in 2001 as the first company to offer streaming on demand access to digital music. In Fall of 2007 MTV Networks merged their Urge music service with RealNetworks to create the joint-venture that created the Rhapsody music service we are familiar with today.
Stay tuned…
