Napster set for Latin America as Rhapsody and Telefonica partner

Telefonica Digital and Rhapsody have struck a wide-ranging strategic agreement that will pave the way for Rhapsody-owned streaming service Napster to enter Latin America. The international expansion will come as a result of the transfer of hundreds of thousands of existing customers of the Sonora music service – owned by Telefonica’s Terra subsidiary – which will be replaced by Napster.
Telefonica gains an equity stake in Rhapsody as part of the deal and will also be able to offer bundled Napster music services to subscribers across its global footprint.

Sonora subscribers will migrate to Napster from November 1. The service currently has customers in Brazil, where the switchover will start, as well as Argentina, Colombia, Chile, Peru and Mexico.

Rhapsody has established an office in Sao Paulo to support the deal and future commercial launches throughout Latin America.

Paul Springer, senior vice president and global head of product for Rhapsody said, “At Rhapsody, we have a rich history of providing music lovers instant, anywhere, anytime access to an unlimited catalog of music.

“We value product innovation and partnerships, and you’ll see both through this Telefonica relationship. As global smartphone usage continues to rise, particularly in Latin America, we are thrilled to put more music in the hands of music fans across the globe.”

Stephen Shurrock, CEO of new business ventures at Telefónica Digital said: “Whether through the O2 Arenas or services such as Sonora, we have long believed that music is an important way of engaging with customers. As demand for streaming music services takes off, our Rhapsody partnership will allow us to deliver a compelling music proposition to our customers, leveraging Napster’s heritage, brand and strong position in this market.”

Source: Music Week