Yahoo Inc. will stop operating its online music subscription service and switch its users to RealNetworks Inc.’s Rhapsody music service through a new deal between the two that requires Rhapsody promotion by Yahoo.
Terms of the deal have not been disclosed and are to be formally announced today reports the AP.
Scott Moore, Yahoo’s head of media stated “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 of those as we can.” He continued that the firm would be able to focus on free, ad-supported music and media due to this partnership.
Yahoo Music Unlimited lets users download an unlimited number of songs that can be played as long as the account is active.
Under the terms of the partnership, user will be shifted to the Rhapsody service for a limited time. Should they choose to stay with the service they will eventually be required to sign up under Rhapsody’s rates, the report continues.
While Yahoo has not said how many subscribers its music service has, Rhapsody boasts about 2.75 million users globally.
Yahoo’s rates range from $5.99 a month of $8.99 a month should a user not pay a full year in advance. Rhapsody members pay a range starting with $12.99 a month.
“They are our subscription partner going forward and there’s money to be made for both of us in that,” Moore said.