Rhapsody music joint venture is going to be turned into a new corporation that will operate independent of Digital-entertainment Company RealNetworks Inc. and media giant Viacom Inc. Reconstructing their ownership and rights in the joint venture is planned by Viacom and RealNetworks, presently 51% owner of the Rhapsody venture and its operator. Contending the subscription music services with others, the company had about 700,000 subscribers at the end of the third quarter since the start of 2009 which is down about 100,000.

Robert Kimball, President and acting Chief Executive of RealNetworks said, “The spinoff will allow the company to focus on its other businesses, including casual games and its RealPlayer software. Separating Rhapsody into its own independent company is a significant first step in making RealNetworks a more focused and profitable company”.

To get Rhapsody preferred stock in the transaction, $18 million in cash will be contributed by RealNetworks. On Nasqad, RealNetworks increased to 2% to $4.16 as of 4 p. m. Rhapsody was acquired by Seattle-based RealNetworks in a 2003 purchase of Listen. com. RealNetworks also sell Internet video games and mobile-phone ring tones.