Yahoo will unplug its digital music service Yahoo Music Unlimited and make Rhapsody the Web giant's exclusive provider for tunes.
Deal is a coup for Rhapsody America, a co-venture between MTV and RealNetworks, and it comes at a time when Yahoo is seeking ways to make its services more appealing and compete with Google.
Pact not only ups Rhapsody's subscriber count but pushes the brand in front of Yahoo's millions of daily users. At the same time, Yahoo will benefit from more exposure to MTV's lucrative viewership.
Financial terms of the deal were not disclosed, but it will include music on-demand and digital downloads.
As part of the move, subscribers of Yahoo Music Unlimited will be moved to Rhapsody's service in the coming months. Pricing will remain the same for those subs for a limited time.
Contact Marc Graser at
marc.graser@variety.com