Rhapsody To Acquire Streaming Music Service Napster From Best Buy
On-demand music service Rhapsody has announced that it will acquire Napster from the electronics retailer Best Buy. Rhapsody will acquire all Napster subscribers along with other assets and Best Buy will receive a small stake in Rhapsody.
The acquisition is a big move for Rhapsody as it will combine the user base of 2 of the largest on-demand music services. With Napster, Rhapsody can enhance its product line and deliver more to its customers. Rhapsody will also acquire Napster’s distribution deals.
Jon Irwin, President of Rhapsody, spoke on how the service plans to expand its business with the new acquisition. He said:
This is a ‘go big or go home’ business, so our focus is on sustainably growing the company. We’re excited to welcome Napster music fans to the best on-demand music experience anywhere. Our new members will have more places to connect to the music they love and to discover new favorites, guided by Rhapsody’s rockstar editorial team and the tastes of other Rhapsody members via our innovative social features.
Rhapsody has been expanding their social features, and it’s unclear whether or not Napster will play into this or merely provide an improved catalog. In addition to their most recent partnership with Facebook, Rhapsody updated their service to have easier Facebook and Twitter sharing as well as a follow feature.
Rhapsody’s acquisition of Napster is expected to close around Nov. 30.