Sunnyvale, Calif. - Yahoo (NASD: YHOO) announced on Monday that it will dump its Yahoo Music Unlimited digital music service, and replace it with Rhapsody, the competing on-demand streaming service offered by Rhapsody America, a joint venture between RealNetworks (NASD: RNWK) and Viacom's (NYSE: VIA) MTV Networks. Yahoo and Rhapsody also intend to collaborate on other digital music services, such as music downloads.

In the coming months, Yahoo Music Unlimited subscribers will be migrated to Rhapsody's service; current subscribers will be able to maintain their existing pricing tiers for a limited time after the migration.

Yahoo also announced that it has acquired FoxyTunes, the developer of a toolbar plug-in that lets users control desktop and Web-based music players.

FoxyTunes also enables search for lyrics, videos, bios and other information based on what is currently playing in a user's media player.

Related Links:
http://biz.yahoo.com/prnews/080204/aqm084.html?.v=28

http://ycorpblog.com/2008/02/04/music-for-the-masses/

http://music.yahoo.com

http://www.rhapsody.com