Verizon Joins Music Alliance

NEW YORK -- RealNetworks, Inc. (NASDAQ:RNWK), MTV Networks, a division of VIACOM International (NYSE:VIA)(NYSE:and)(NYSE:VIA.B), and Verizon Wireless, a joint venture of Verizon Communications (NYSE:VZ), 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."

Verizon Wireless