Microsoft and Real settle and partner new deal

In a press release, Microsoft has announced three agreements valued at $761 million to RealNetworks to settle their antitrust case and create a new partnership. The new partners will “innovate and promote consumer choices in digital music and games”.

The new partnership will bring the Rhapsody subscription service and RealNetworks’ games to millions of Microsoft’s MSN users. The three agreements include :

1. resolution of all the companies’ antitrust disputes worldwide
2. agreement for wide-ranging digital music collaboration between the companies, including promotional and marketing support of Real’s leading digital music subscription service, Rhapsody, on MSN properties
3. agreement to offer RealNetworks’ digital games through MSN Games and Xbox Live Arcade for Xbox 360.

Under the music and games agreements, Microsoft is scheduled to pay Real $301 million in cash and provide services over 18 months in support of Real’s product development, distribution, and promotional activities. Microsoft will earn credits at predetermined market rates to be applied to the $301 million for subscribers delivered to Real through MSN. Additionally, Real will take steps to support MSN Search, and Real and Microsoft will jointly promote use of Windows Media technologies with Rhapsody to Go.

[From Microsoft]