Three Big Boys Join Forces To Take On iTunes

RealNetworks, Inc., MTV Networks, a division of VIACOM International, and Verizon Wireless, a joint venture of Verizon Communications, and Vodafone today announced they are teaming to create a single, integrated digital music experience that consumers can access via their PC, portable music device or mobile phone. Promising to be ultra-rich in music culture, programming and discovery, Rhapsody will unite the best of RealNetworks’ market-leading service and MTV Networks critically acclaimed URGE music service. Verizon Wireless’ V CAST Music — the most successful mobile music service in the country — will become the mobile platform for the integrated Rhapsody service.

As part of this alliance, MTV Networks and Real are forming a new company, Rhapsody America, whose offering will be the exclusive digital music service for Real and for MTV Networks’ premier music and pop culture brands in the United States. Both partners will bring complementary strengths, including MTV Network’s storied history in music programming, unparalleled connection with music fans, and youth marketing prowess, with Real’s innovative technology, market momentum for Rhapsody, and deep relationships within the consumer electronics industry. Michael Bloom, previously General Manager of MTV Network’s URGE, will lead Rhapsody America, which will have offices in New York, Seattle and San Francisco.

Real and MTV Networks, through their Rhapsody America venture, have formed a long-term, groundbreaking and exclusive relationship with Verizon Wireless, in which the companies will be partners in bringing consumers digital music to their PCs and over the air to their mobile phones. Through the relationship with Verizon Wireless, Rhapsody will be fully integrated with VCAST Music, delivering a superior music service across multiple consumer devices.

“With RealNetworks and Verizon Wireless, we’re creating a unique and engaging experience that also reflects our own strategy of allowing fans to go narrow and deep into the musical genres they love,” said Judy McGrath, Chairman and CEO of MTV Networks. “Any time we can partner with industry leaders like this to create a new music proposition, everyone wins, especially the audience.”

“Today’s announcements represent a sea-change in the digital music market,” said Rob Glaser, chairman and CEO, RealNetworks. “By partnering with MTV Networks, home of the most storied brands in music history, and the market’s leading wireless company, Verizon Wireless, we’ll make Rhapsody the premier digital music service that delivers great music to millions of consumers whenever and wherever they want.”

“By bringing together the cultural and musical heritage of the MTV Networks family with the functionality of Rhapsody and the reach of V CAST Music, it’s like we’ve put the best lead singer, drummer and guitarist all on the same giant stage, allowing music fans to experience the purest music play in any way they want,” said Van Toffler, President of MTV Networks Music & Logo Group. “The new Rhapsody will build on the musical curation of URGE and have the marketing power of MTV, VH1 and CMT behind it, ensuring this new platform is front and center in the hearts and minds of music lovers.”

John Stratton, executive vice president and chief marketing officer of Verizon, said, “Our commitment to innovation and making V CAST Music the #1 mobile music service in the country has led to today’s momentous announcement. Verizon’s alignment with these two great companies — MTV Networks’ music and youth marketing expertise with RealNetworks’ acclaimed service and technology — promises to propel digital music into an exciting new future. Together, our three companies will provide a new, unbeatable digital music experience that will give every consumer a way to get music quickly and easily — whether sitting in front of a computer screen or on-the-go with a mobile device.”

Real, MTV Networks and Verizon Wireless will leverage their complementary strengths to bring the new service to market and back it up with an aggressive advertising and promotional campaign. Verizon Wireless will market Rhapsody through its extensive network of Verizon Wireless Communications Stores nationwide when the service launches on mobile phones. Rhapsody will become the music service of choice across MTV Networks’ MTV, VH1, and CMT brands and their myriad of online youth-culture touch points. On-air integration for the new service will begin next week and Rhapsody will also be integrated into the fabric of MTV’s marquee event, the Video Music Awards airing live from Las Vegas on September 9th.

Customer Experience

Starting today, URGE customers can use their existing usernames and passwords to log in to Rhapsody and enjoy access to both services. In addition, Rhapsody customers can get their first taste of MTV Networks’ rich programming from MTV, VH1 and CMT. Verizon Wireless customers can already download music instantly to their V CAST-enabled phones at any time and from anywhere in the V CAST service area and transfer digital music to their phones from their PC. In the months ahead, Verizon Wireless will roll out functionality that sends the duplicate copy of songs purchased over the air directly to a customer’s Rhapsody account. The service will also allow transfer of subscription music from a Rhapsody account to a mobile phone.

Rhapsody will also continue to be offered through RealNetworks’ extensive network of partners, including Best Buy, SanDisk and TiVo.

Source: MTV Networks

Paris Hilton, Lindsay Lohan Mocked In ‘Prison Life’

Paris Hilton may be in back in jail and Lindsay Lohan is still in rehab, but the term “too soon” just isn’t in the vocabulary of the creators of The Prison Life: Paris. 

GSN, the creators of previous titles such as Kim Jong-Il: Missile Maniac, Rosie vs. Trump, and other pop culture flash games, have decided to focus on Ms. Hilton and her recent woes.  We hate giving free pub to such large corporate entities, but it’s actually a cute way to waste five minutes. 

“Paris is in jail and the warden has assigned her to design and build license plates. Help her with her job and watch out for her little dog “Clinkerbell”, the instructions proclaim.

In the free title, players must help the orange jumpsuit clad heiress print vanity license plates such as TMZ4ME, RCHBTCH, and PRTYGRL.   When one does poorly, insults such as “Ouch–Lindsay Lohan plays better than you!” are hurled. 

For the record, Ms. Lohan has not spent any time in the big house…yet.   Play the game here.

Microsoft To Purchase aQuantive For $6 Billion

Microsoft Corp. today announced it will acquire aQuantive, Inc., for $66.50 per share in an all-cash transaction valued at approximately $6 billion. This deal expands upon the Company’s previously outlined vision to provide the advertising industry with a world class, Internet-wide advertising platform, as well as a set of tools and services that help its constituents generate the highest possible return on their advertising investments.

“The advertising industry is evolving and growing at an incredible pace, moving increasingly toward online and IP-served platforms, which dramatically increases the importance of software for this industry,” said Steve Ballmer, chief executive officer of Microsoft. “Today’s announcement represents the next step in the evolution of our ad network from our initial investment in MSN, to the broader Microsoft network including Xbox Live, Windows Live and Office Live, and now to the full capacity of the Internet. Microsoft is intensely committed to creating a thriving advertising business and to partnering closely with all key constituencies in this industry to help maximize the digital advertising opportunity for all.”

The aQuantive acquisition enables Microsoft to strengthen relationships with advertisers, agencies and publishers by enhancing the Company’s world-class advertising platforms and services beyond its current capabilities to serve MSN. The acquisition also provides Microsoft increased depth in building and supporting next generation advertising solutions and environments such as cross media planning, video-on-demand and IPTV. Combining aQuantive’s technologies and services with Microsoft’s portfolio will provide value for the industry’s key constituencies as follows:

• Advertisers and ad agencies will benefit from a world-class media planning, buying and campaign management solution to drive maximum ROI and optimize their reach to audiences across the increasingly fragmented, interactive media landscape.
 
• Media owners/publishers will gain access to best-in-class inventory optimization and monetization solutions across a full suite of rich media, video and targeting capabilities.
 
• The broader advertising ecosystem will benefit from the leading interactive advertising agency, Avenue A | Razorfish, continuing to serve its impressive client roster, while also embedding the voice of the marketer into Microsoft’s next generation advertising solutions and services.
 

Founded in 1997, aQuantive, Inc. (NASDAQ: AQNT) is the parent company of one of the industry’s most successful families of digital marketing service and technology companies, encompassing three primary brands.

• Atlas provides a set of advanced tools for both advertisers and publishers. The Atlas Media Console is an industry-leading toolset providing agencies and advertisers with capabilities to maximize ROI. The Atlas Publisher platform enables publishers to maximize monetization opportunities for their content.
 
• DRIVEpm provides services to publishers and advertisers that match advertiser campaigns with publisher inventory enabling all parties to maximize ROI.
 
• Avenue A | Razorfish is one of the largest interactive ad agencies in the world, providing advertisers with industry-leading digital marketing consultation, media planning and buying, and creative services that help advertisers use the online channel to build meaningful, profitable relationships with their customers.
 

“Combining the talented people and deep technology and service expertise of these two companies will help make buying and selling media simpler, smarter and more cost effective for advertisers, agencies and publishers alike,” said Kevin Johnson, president, Platforms and Services Division at Microsoft. “Joining the capabilities of these groups is an important step toward our goal of becoming an industry leading, Internet-wide advertising platform.”

“aQuantive’s mission has been to leverage the power of digital marketing services and technologies to drive measurable results for our clients,” said Brian P. McAndrews, chief executive officer of aQuantive. “Microsoft has set a leading example in prioritizing industry partnership, transparency, measurement and quality, and we look forward to combining forces and bringing the value of our combined assets to bear for the benefit of advertisers, ad agencies and publishers.”

The deal is expected to be completed in the first half of Microsoft’s fiscal year 2008. The acquisition is not expected to have a significant impact on the financial guidance previously issued by the Company.

aQuantive, which has approximately 2600 employees, will continue to operate from its Seattle headquarters as part of Microsoft’s Online Services Business. The combination of Microsoft and aQuantive takes the Company’s advertising platform to the next level in its ability to serve Microsoft’s first party audience assets like MSN, Windows Live, Xbox Live, and Office Live, as well as for third party publishers and applications such as Facebook and Activision game titles.

At 5:45 a.m. PDT today, Microsoft will hold a teleconference to discuss the acquisition. To participate, U.S. residents can dial 888-930-9423, and those outside the United States can dial + 1-773-681-5992. Passcode is 2760445. The call will be available for playback beginning approximately one hour after the conclusion of the call through 5pm PDT on Tuesday, May 22. To access the playback, U.S. residents can dial 800-774-9248, and those outside the United States can dial +1 402-220-0372. An audio webcast of the conference call will also be made available at the Investor Relations site http://www.microsoft.com/msft.

Source: Microsoft

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