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Originally published Monday, February 4, 2008 at 12:00 AM

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Yahoo strikes deal with RealNetworks' Web music service

Yahoo will cease operating its online music-subscription service and switch customers to RealNetworks Rhapsody music service as part of...

By The Associated Press

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LOS ANGELES — Yahoo will cease operating its online music-subscription service and switch customers to RealNetworks Rhapsody music service as part of a new deal between the companies that calls for Yahoo to promote Rhapsody on its site.

Terms of the deal, to be announced today, were not disclosed. The move is part of Yahoo's overhaul of its online music offerings.

Scott Moore, Yahoo's head of media, said the partnership would allow it to focus more on free, ad-supported music and other media offerings.

Yahoo Music Unlimited lets users download an unlimited number of tracks that are playable as long as their plan is active.

Under the Yahoo-RealNetworks deal, subscribers to Yahoo Music Unlimited will be shifted to Rhapsody in the first half of this year. Those wishing to remain on Rhapsody eventually will be required to sign up at Rhapsody's rates.

Yahoo's subscription rates range from $5.99 a month, if users pay for a full year in advance, or $8.99 a month. Rhapsody starts at $12.99 a month.

Yahoo executives declined to say how many subscribers their music service has. Rhapsody has 2.75 million subscribers worldwide.

Yahoo also will integrate Rhapsody into its online music portal, something both companies hope will attract new Rhapsody subscribers.

Copyright © 2008 The Seattle Times Company

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