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Business News (more headlines) 05-28-2003

RHAPSODY Digital Music Service Launches 79˘ CD Burning

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SAN FRANCISCO - May 28, 2003 - In a move that makes it more affordable for consumers to legally buy and own music via the Internet, Listen.com and a number of its distributors today announced plans to cut the cost of burning songs through the RHAPSODY digital music service to just 79 cents per track. This new price, which applies to RHAPSODY's entire library of burnable content, is the lowest per-burn price available to U.S. consumers through any of the new generation of digital music services, highlighting another advantage of subscribing to RHAPSODY. Listen.com also announced that RealNetworks, which today introduced RealOne RHAPSODY, has become the newest distribution partner for the critically acclaimed service.

"Today's news reinforces that subscribing to RHAPSODY is an exceptional deal for music fans," said Sean Ryan, chief executive officer, Listen.com. "RHAPSODY already gives Windows-based subscribers unlimited access to 25,000 CDs' worth of music, exceptional Internet radio and rich editorial content. Now we're rewarding our customers with the lowest available cost for music they want to keep permanently. It's just another advantage of being a RHAPSODY subscriber."

Listen.com's decision to offer low-cost CD burning as part of the overall RHAPSODY experience is based on the success of a promotion offering 49-cent CD burns in February and March. During that promotion, there was a dramatic increase in sign-up rates from music fans interested in RHAPSODY's unique combination of unlimited listening and low cost burning, and subscribers' burning activity increased by more than 300%. Offering new CD burn pricing will make the service more appealing to an even wider audience of music fans.

The new CD burning price is available to consumers who have subscribed to RHAPSODY through Listen.com and a number of participating distributors that offer RHAPSODY to customers under their own brand, including Audiogalaxy, Charter Communications, Gateway, JamBase.com, RCN Corporation, Speakeasy, Verizon Online, and RealNetworks, which last month announced that it had entered into a definitive agreement to acquire Listen.com, the creator of RHAPSODY. The parties expect the acquisition to be final in the 2nd or 3rd quarter.

RHAPSODY is the award-winning digital music service from Listen.com. RHAPSODY gives subscribers unlimited access to the world's largest library of major and independent label music, spanning some 330,000 songs (of which more than 200,000 are available for burning) from all five major music companies and more than 150 of the world's most prominent independent labels. RHAPSODY subscribers can also burn full albums or custom mix CDs, build their own custom Internet radio stations, listen to professionally-programmed stations, and browse extensive music information and editorial recommendations.

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