RNWK-MSFT: The Music & Games Agreement


The topline details are in the post prior. This is what it includes on the music and games side:

— Under the music and games agreements, Microsoft is scheduled to pay Real $301 million in cash and provide services over 18 months in support of Real’s product development, distribution, and promotional activities.

— Microsoft will earn credits at predetermined market rates to be applied to the $301 million for subscribers delivered to Real through MSN.

— Additionally, Real will take steps to support MSN Search, and Real and Microsoft will jointly promote use of Windows Media technologies with Rhapsody to Go.

More on the partnership:

MSN will be featuring Rhapsody from within its homepage, MSN Music, MSN Search, and MSN Messenger. The music collaboration agreement includes the following elements:

— MSN Messenger users will be able to share and play music while
chatting, from the library of over 1 million songs in Rhapsody;

— MSN Search will use Rhapsody’s music editorial
catalogue to help users find the music they love and to discover new

— The two companies will jointly develop and implement a search
integration plan which will enable Real’s customers to easily use MSN
Search within RealPlayer

— MSN Search will feature Rhapsody links to music in music related search

— The agreement enables Real to purchase advertising on MSN Search and on
the MSN Network to promote Rhapsody;

— Both companies will promote the use of Windows Media portable devices
for use with Rhapsody to Go.

Additionally, Microsoft and Real will collaborate in the casual games arena….In this new games partnership, Real will create a new subscription service to be offered on MSN Games and Real will also develop a series of new casual games for Xbox Live Arcade for Xbox 360.

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