HP Drops iTunes, Taps RealNetworks For Bundled Music

Some good news for RealNetworks after a dry spell…after several years of distributing Apple’s iTunes software with its new PCs, HP is shifting its allegiances to rival RealNetworks’ Rhapsody music service…

This is not a surprise, since HP dropped its co-branded iPods last year. Rhapsody will now be the default music-playing software on HP’s new PCs and laptops from spring 2006.

This deal may also lead to extending Rhapsody beyond the computer and into other home devices being worked on by HP.

Also to be announced: RealNetworks in a distribution deal with cable giant Cox, which for the first time will allow the music service’s monthly fee to be included on a customer’s cable bill.

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