ASCAP, Rhapsody Reach New Licensing Agreement

Could a new era of civility be dawning in the digital streaming space? A new agreement announced today by NYC-based ASCAP (American Society of Composers, Authors and Publishers) and subscription music streaming service Rhapsody International Inc.may be pointing towards just such a development.

Rhapsody: now legal with ASCAP through 2013.

The new accord provides Rhapsody with a two-year ASCAP license for 2012 and 2013, which allows Rhapsody to perform publicly the works of more than 430,000 songwriter, composer and music publisher members of ASCAP. In essence, the ASCAP blanket license is a streamlined solution wherein Rhapsody can legally stream music while respecting the right of its creators to be paid fairly.

In making the announcement, ASCAP noted that although Rhapsody has been licensed since its inception, the new agreement represents the two company’s first independent agreement since Rhapsody’s separation from its long-time parent company, RealNetworks, in April 2010. While under RealNetworks operation, Rhapsody’s license fees to ASCAP were determined by a series of rate court litigations, interim arrangements and, ultimately settlement agreements for periods through 2011.

Launched in December 2001, Rhapsody was a pioneer as the first subscription music service. Today, the company is the largest premium subscription music service in the United States, with 1 million+ paying subscribers and more than 14 million tracks spanning nearly 600 genres.

The Rhapsody service is available on more than 70 consumer electronic devices, including all smartphone platform. Rhapsody subscribers also have access to original editorial content from its staff of music writers, including reviews, features, playlists and more than 200 programmed radio stations.

ASCAP has also recently concluded agreements with other digital streaming services, including Netflix and Hulu.

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