Telefónica Digital picks the music industry's original digital disrupter -- now a by-the-books subscription service -- as its favored streaming music provider, and it could take a stake in Rhapsody. October 16, 2013 6:01 AM PDT Carlos Domingo, Telefonica Digital's director of product development and innovation. (Credit: Stephen Shankland/CNET) Telefónica, one of the largest telecommunications companies in the world, has picked Napster as the recommended streaming service for its business units, bringing Rhapsody's subscription music service to Latin America for the first time. While limited in scope initially, the partnership means Napster will have a vocal advocate for it when Telefónica operating units -- such as O2 and Movistar -- pick a music service to bundle into phones. Related stories Sean Parker agrees to $2.5M settlement over wedding venue Remember Napster? Rhapsody is refreshing Europe's memory The 404 1,238: Where we open up for Bayside (podcast) The 404 1,235: Where we charge you just for browsing (podcast) Is Spotify unfair to musicians? At first, their alliance will mean Napster replaces Sonora, a subscription music service provided by Telefónica unit Terrain Brazil, Argentina, Colombia, Chile, Peru and Mexico. That moves Napster into Latin America for the first time, and area of rapid smartphone growth. The companies wouldn't specify Sonora's number of active users, but they generalized it is in the hundreds of thousands. Rhapsody has 1 million paid subscribers globally. Telefónica's had 317.3 million customers as of June, operating across 24 territories. Its main commercial brands are O2 in Northern Europe, Movistar in Spain and Latin America and Vivo in Brazil. Telefonica can earn a minority stake in Rhapsody International as part of the partnership, but the companies wouldn't specify how large it could be or other financial terms. After Rhapsody bought Napster in 2011, it kept quiet on the former peer-to-peer service that switched to above-board streaming service, until it announced plans to expand into 14 European countries from the U.K. and Germany in June.
Telefónica Digital picks the music industry's original digital disrupter -- now a by-the-books subscription service -- as its favored streaming music provider, and it could take a stake in Rhapsody.
Carlos Domingo, Telefonica Digital's director of product development and innovation.
(Credit: Stephen Shankland/CNET)
Telefónica, one of the largest telecommunications companies in the world, has picked Napster as the recommended streaming service for its business units, bringing Rhapsody's subscription music service to Latin America for the first time.
While limited in scope initially, the partnership means Napster will have a vocal advocate for it when Telefónica operating units -- such as O2 and Movistar -- pick a music service to bundle into phones.
Related stories
- Sean Parker agrees to $2.5M settlement over wedding venue
- Remember Napster? Rhapsody is refreshing Europe's memory
- The 404 1,238: Where we open up for Bayside (podcast)
- The 404 1,235: Where we charge you just for browsing (podcast)
- Is Spotify unfair to musicians?
At first, their alliance will mean Napster replaces Sonora, a subscription music service provided by Telefónica unit Terrain Brazil, Argentina, Colombia, Chile, Peru and Mexico. That moves Napster into Latin America for the first time, and area of rapid smartphone growth.
The companies wouldn't specify Sonora's number of active users, but they generalized it is in the hundreds of thousands.
Rhapsody has 1 million paid subscribers globally. Telefónica's had 317.3 million customers as of June, operating across 24 territories. Its main commercial brands are O2 in Northern Europe, Movistar in Spain and Latin America and Vivo in Brazil.
Telefonica can earn a minority stake in Rhapsody International as part of the partnership, but the companies wouldn't specify how large it could be or other financial terms.
After Rhapsody bought Napster in 2011, it kept quiet on the former peer-to-peer service that switched to above-board streaming service, until it announced plans to expand into 14 European countries from the U.K. and Germany in June.
