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Audiogalaxy Adds Rhapsody Service

By:Brian Garrity, N.Y.
Publication: Billboard Bulletin
Date: Tuesday, September 10 2002
File-swapping site Audiogalaxy.com-at one time one of the leading sources of pirated music content on the Web-has quietly become a distribution partner for Listen.com's Rhapsody subscription service. Listen apparently has been allowing Audiogalaxy users to try Rhapsody without charge since Labor Day. The limited-time free offer-a standard marketing initiative Listen extends to all its distribution partners-runs through Sept 15. Users do not have to provide credit-card information to test the service.

The deal marks the first commercial deployment of a major-label-sanctioned subscription service through a peer-to-peer network. Napster at one point had a deal in place to distribute MusicNet; however, the agreement was never acted upon, and the alliance fell apart.

Audiogalaxy in June settled a copyright-infringement suit from the RIAA, the National Music Publishers' Assn., and the Harry Fox Agency. The Austin-based company agreed to block the swapping of copyrighted works but remains active, carrying independent content.

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