Telefónica has agreed to acquire a stake in Rhapsody International, the parent firm of Napster, as part of deal to introduce the music streaming website into the telecoms group’s Latin American marketplaces.
As part of the deal, Telefónica will shut down its Terra subsidiary’s Sonora music service in Latin America, and promote customers to swap to Napster upon its planned launch on 1 November.
The deal would also allow the Spanish telecoms firm to offer bundled Napster music services to its millions of subscribers across the globe.
Telefónica Digital New Business Ventures CEO Stephen Shurrock said the firm has long believed that music is an important way of engaging with customers.
"As demand for streaming music services takes off, our Rhapsody partnership will allow us to deliver a compelling music proposition to our customers, leveraging Napster’s heritage, brand and strong position in this market," Shurrock said.
According to the telecoms firm, the deal also enables Telefónica operating businesses in Europe and Latin America to offer the Napster premium music service, with unlimited access to over 20 million tracks and custom curated editorial content, to their users.
Rhapsody senior vice president and global head of product Paul Springer said that the firm offers music lovers instant, anywhere, anytime access to an unlimited catalog of music.
"As global smartphone usage continues to rise, particularly in Latin America, we are thrilled to put more music in the hands of music fans across the globe," Springer said.
