RealNetworks Expands Mobile Music Presence Through Strategic Vodafone Partnership

In a significant move to strengthen its position in the mobile music market, RealNetworks has established a partnership with Vodafone, one of Europe's leading wireless carriers. This agreement follows just a day after Napster announced its collaboration with Motorola to power music services on ROKR handsets.

The deal wasn't straightforward for RealNetworks, as it required the acquisition of Sony NetServices, a joint venture between Sony DADC and Sony Europe that previously managed Vodafone's music offerings. This strategic acquisition allows RealNetworks to immediately take control of existing music services across multiple European markets.

Currently, Vodafone customers in seven countries—Germany, Ireland, Italy, Greece, Portugal, Romania, and the United Kingdom—can access both music downloads and streaming services. French customers have access to the streaming service only.

RealNetworks plans to enhance these offerings by leveraging technology from its Widerthan acquisition, which specializes in mobile music services and synchronization between mobile devices and personal computers. While specific financial terms remain undisclosed, the agreement with Vodafone spans multiple years.

John Giamatteo, President of Technology Products at RealNetworks, emphasized the company's capability to deliver personalized music experiences optimized for Vodafone's 3G networks throughout Europe.

With Vodafone added to its client roster, RealNetworks now serves 12 music-on-demand customers representing over 196 million mobile subscribers across 11 countries. This expansion reflects the company's strategic pivot toward mobile markets for music and gaming content, as its Rhapsody service continues to face fierce competition from Apple's dominant iTunes platform.

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