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Breakdown of the Microsoft-RealNetworks deal

Details of RealNetworks’ $761 million antitrust settlement with Microsoft,
/ Source: The Associated Press

Details of RealNetworks’ $761 million antitrust settlement with Microsoft:

  • Microsoft gives RealNetworks a $460 million up-front cash payment, plus $301 million in cash and support services for the development, distribution and promotion of Real products.
  • Microsoft earns credits that will be applied to the $301 million for subscribers it delivers to Real through its MSN online service.
  • MSN features Real’s music subscription service, called Rhapsody, on its Web home page as well as at the MSN Music and MSN Search sites and in the MSN Messenger instant-messaging application.
  • RealNetworks takes steps to support MSN Search, which will employ Rhapsody’s editorial catalogue to help users find music.
  • The two companies jointly develop a way for RealNetworks customers to use MSN Search within the RealPlayer media player.
  • Both companies jointly promote use of Windows Media technologies with the Rhapsody To Go subscription service, which lets users take music portable.
  • Both companies promote the use of Windows Media portable devices for use with Rhapsody To Go.
  • MSN Messenger users will be able to share and play music while chatting using Rhapsody’s library of more than 1 million songs.
  • RealNetworks will create a new subscription service to be offered on MSN Games and also develop a series of new games for the Xbox 360 console and Xbox’s online service.