AOL Purchases MusicNow
November 3, 2005 at 12:46 PM (PT)
AMERICA ONLINE has acquired the business of digital music subscription company MUSICNOW, LLC. The agreement was signed SEPTEMBER 27 and closed early this week. Financial terms of the deal were not disclosed. AOL also announced that a broad public preview of the new web-based digital music service is now available at www.aolmusicnow.com. AOL will be gradually upgrading current MusicNet@AOL subscribers to the new service, called "AOL MUSIC NOW."
AOL MUSIC NOW will provide visitors with the option to browse and purchase music on an a la carte ($.99 per track) or subscription basis from any Internet-connected PC, without downloading separate media player software. Subscriptions to the new service will be available for $9.95 per month for unlimited streaming and downloading to a computer, or $14.95 for unlimited streaming and downloading to a computer and any ‘PlayForSure’ compatible portable music device. Songs can be managed with a WINDOWS MEDIA PLAYER or compatible player.
MUSICNOW, which was previously held by CIRCUIT CITY STORES, INC., will continue to be based in CHICAGO. AOL MUSIC NOW will operate as a stand alone, wholly-owned subsidiary of AOL PREMIUM SERVICES, a subsidiary of AOL in the Digital Services business unit. The company’s 40 employees, including Pres. GARY COHEN, will report AOL Premium Services Pres. AMIT SHAFRIR and AOL Premium and Subscription Services SVP and GM ED FISH.