In conjunction with the transaction, whose amount was not disclosed, Jason Epstein and Andrew Intrater from CNTP joined the Board of Directors of the company.
Initially launched in December 2001 and operating in the United States as Rhapsody and in Europe as Napster, Rhapsody International provides a streaming music service that gives members unlimited on-demand access to more than 20 million songs, on PC, laptop, Internet connected home stereo or TV, MP3 player or mobile phone.
In December 2011, the company acquired Napster International and recently launched the Napster music streaming service in 15 additional countries in Europe. It also rolled out a partnership with MTV in conjunction with German wireless carrier ePlus.
In conjunction with the investment, Rhapsody will restructure US operations and add resources to accelerate its efforts in Europe and emerging markets. The restructuring will affect approximately 15% of Rhapsody’s staff. Jon Irwin will step down as president and will continue on as a strategic adviser.
The executive operating committee now consists of executives Brian Ringer, chief technology officer, Paul Springer, senior vice president, Americas, Thorsten Schliesche, senior vice president, Europe and Ethan Rudin, the new chief financial officer.