The Social

Update at 7:59 a.m. PST: A RealNetworks representative quashes a rumor about a RealNetworks-MTV joint venture.

The long-expected layoffs at Viacom, parent company of MTV Networks, have finally taken place.

According to an internal memo (first leaked to gossip blog Gawker), 850 positions have been cut. That amounts to 7 percent of the company's workforce.

"Our advantages and best efforts can't completely protect Viacom from the very serious and broad-based challenges of this economic recession," CEO Philippe Dauman wrote in the e-mail. "Viacom's long-term health will depend on our shared commitment to adapt, to innovate and to make difficult choices. To compete and thrive, we need to create an organization and a cost structure that are in step with the evolving economic environment."

A press release Thursday from Viacom gave a more detailed explanation: "The restructuring and write-down together will result in a pre-tax charge of $400 million to $450 million, or $0.42 to $0.48 per diluted share, in the fourth quarter of 2008. These staffing and compensation actions and write-downs are expected to result in pre-tax savings of $200 million to $250 million in 2009."

It's been common knowledge that Viacom layoffs were on the way, and the company had already canceled its big holiday parties this year, giving employees two extra vacation days in exchange.

In addition to MTV, Viacom owns BET Networks and Paramount Pictures. Its cable channels include Comedy Central, Nickelodeon, VH1, and Noggin.

According to a separate post on Gawker, the New York office for MTV-RealNetworks joint venture Rhapsody America is rumored to have closed, leaving 25 people jobless. RealNetworks spokesman Ryan Luckin said in an e-mail to me on Thursday that the rumor is false.

An official Scrabble application, developed by RealNetworks' Gamehouse division, recently launched on Facebook's developer platform. Will it be a Zombies-caliber success? Probably not.

It's been clear for a while that the copyright holders on the classic board game Scrabble have been none too pleased with the wildly popular Scrabulous, a developer-created Facebook application that mimics the design and rules of the original. So it seemed that, after months of legal threats, the companies behind Scrabble would be taking a step in the right direction to actually launch an official Facebook app to offer users a legal alternative to Scrabulous on the popular social-networking site.

Ouch! Somebody on Facebook doesn't like the new Scrabble app's restrictions.

(Credit: Facebook)

Except not really. The Scrabble app is only available to Facebook users outside the U.S. and Canada, because the rights to Scrabble are owned by Hasbro in those two countries and by Mattel elsewhere around the world. It was Mattel that negotiated the Scrabble Facebook app with RealNetworks. Only users who list their location as outside the U.S. and Canada can play the game.

Confused yet?

A New York Times article Monday wrote that RealNetworks had, oddly enough, made a pledge to help save the Scrabulous game back in March. Yet a company representative told the Times that the Mattel negotiations had been going on for several months.

All corporate bickering aside, it looks like the Scrabble game, which is in beta, just might not be that awesome. "Facebook Scrabble takes a long time to load, does not always quickly update to show recent moves," the Times article by Heather Timmons related, "and the words the game will accept do not reflect standard Scrabble dictionaries, or even the English language."

Sounds like the "Save Scrabulous" crowd has reason to keep up its cause.

It's been a tumultuous few days for Yahoo--you know, with that takeover bid from Microsoft--but the company continues to shake things up internally, too.

On Monday, the company announced that it will discontinue its Yahoo Music Unlimited subscription service and will transfer its customers to RealNetworks' Rhapsody service.

In mid-2008, Yahoo Music Unlimited subscribers will be guided through an in-browser process to convert their music libraries to Rhapsody's service. For a limited time (length unknown), they'll be able to keep paying Yahoo's subscription fees, which cap out at $8.99 per month, before being required to start paying Rhapsody's $12.99 monthly fee.

Additionally, Yahoo announced in conjunction that it has acquired FoxyTunes, a browser plug-in that is compatible with multiple desktop and Web-based music players.

RealNetworks, which acquired Rhapsody when it purchased parent Listen.com for $36 million in 2003, has been partnering with both hardware manufacturers like TiVo and media companies like Viacom's MTV Networks. It's the company's best strategy for staying afloat in a digital music landscape that's not only dominated by Apple's iTunes but also seems to be gravitating toward "free," not subscription-based models.

But the announcement with Yahoo is shrouded in uncertainty, for obvious reasons. Just about anything could happen to Yahoo if Microsoft's proposed $44.6 billion acquisition goes through.

RealNetworks, ironically, has a hostile history with Microsoft, too, dating back to an antitrust scuffle several years ago that led to a partnership in which RealNetworks ultimately claimed it was shortchanged.

Rhapsody, the subscription music service owned by RealNetworks, has teamed up with music blog network and social networking site Mog.com to provide, well, music.

Through this partnership, songs mentioned on Mog's blogs are accompanied by a yellow "play" button that allows users to access the full-length streaming file through Rhapsody, which offers a total of about 4.5 million independent and major-label songs in its catalog. "We couldn't be more excited to have Rhapsody enabling music listening on MOG," Mog founder and CEO David Hyman said in a joint press release. "With today's release, MOG has put more key pieces in place towards its goal of building the ultimate online music community."

Rhapsody's full-length song playback is also now integrated into Mog's "Mog-o-Matic" downloadable music discovery software, creating playlists of recommended music based on what you play on your computer or portable music player. It's social, too--you can listen to not only your playlist, but also those created by members of your friends' list on Mog. In addition, Mog users can create custom playlists of Rhapsody songs, much like Imeem's streaming lineups.

New versions of Mog-o-Matic have been released in conjunction for both the Mac and Windows operating systems; the company touts them as faster, more efficient, and more stable. At the same time, Mog has souped up its music search feature, redesigned its artist and album pages, and tweaked its page layout.

But don't hold your breath--this Rhapsody-Mog deal isn't free. Mog members can access the Rhapsody streaming songs for a 14-day free trial, after which point they have to sign up for Rhapsody's subscription service ($12.99 per month) or a 25-songs-per-month deal.

Rhapsody's subscription-based music service has, thus far, proven unable to compete with Apple's ubiquitous iTunes. As a result, the RealNetworks-owned service has attempted to compete by forging partnerships across the digital-media landscape: an impending music store deal with MTV Networks and an appearance on TiVo set-top boxes, for example.

Unfortunately for Rhapsody, it still hasn't been able to create much of a dent in the iTunes arsenal. Nevertheless, the deals keep rolling in.

On Monday, MTV Networks is set to unveil an initiative to connect its television, online, and mobile presences by helping music fans answer that crucial question--"Who the (expletive) sings that song?"

In other words, MTV Networks, the Viacom division that encompasses the MTV, VH1, and CMT brands as well as a host of other pop culture channels, is aiming to renew its focus on music by bringing lyrics to the forefront. This will begin rolling out in November and is expected to be complete by the middle of 2008.

On television, several of the networks' existing music-related programs will start to incorporate "lyrics and the artists' inspirations for their words" into their structure, and all three channels will air a new "Name That Tune" series, according to a release from MTV Networks.

Online, the networks' Web sites will feature lyrics search data from digital music database Gracenote, accompanied by multimedia artist information, trivia games, and a link to purchase the song in question--which will undoubtedly be tied into MTV Networks' Rhapsody-powered music store when that launches. And in the mobile space, curious music fans will be able to text-message inquiries (an artist's name, song name, or snippet of lyric) to a SMS code and receive a link to a mobile Web site containing data pertaining to the song and artist.

This is a potentially lucrative move for MTV Networks, which has not only struggled to bring its pop culture influence to the Web but has also fallen from some music fans' favor as its networks increasingly prioritize reality shows. Unlicensed lyrics sites are currently facing incipient copyright scrutiny--not to mention the fact that there's no such thing as a Google Lyrics Search.

Not yet, at least.

The National plays the 'Rhapsody Rocks NYC' concert on Monday night at the Highline Ballroom in Chelsea.

(Credit: Caroline McCarthy/CNET Networks)

NEW YORK--You've got to hand it to RealNetworks' Rhapsody. The subscription music service is pulling out all the stops to increase its market share--partnering with TiVo, entering a lofty deal with MTV Networks--and even if it hasn't been able to dent Apple's iTunes, Rhapsody hasn't been making itself look stupid in the process.

In fact, if the company's "Rhapsody Rocks NYC" concert here Monday night was any indicator, music aficionados are taking the company seriously.

(Credit: Rhapsody)

Monday night was the eve of this year's CMJ Music Marathon, which runs from Tuesday through Saturday. While the Rhapsody concert wasn't actually affiliated with the festival, the timing was perfect for a company that's trying to reach out to influential music lovers--just about all of them were in New York for CMJ.

The show, held at the Highline Ballroom in Manhattan's Chelsea neighborhood, featured the Brooklyn-based indie rock act The National--one of those bands that tends to get extolled by indie guru blogs like Pitchfork Media and Stereogum--with openers American Babies, The Little Ones and Pela.

The Highline, coincidentally, is so close to the New York Googleplex that you could practically see Googlers' colorful lava lamps in the building's fourth-floor windows a block away.

The venue was packed, but the people there weren't the sorts who were looking to be seen, pick up dates or start a fight with some hipsters. It also wasn't a geekfest like the Rhapsody-TiVo party earlier this month; as a tech reporter who doesn't normally cover the music industry, I saw very few familiar faces, and there was no cadre of gossiping gadget bloggers clustered by the bar.

Rather, the people who showed up to Rhapsody's pre-CMJ event were the kinds of fans who would be talking about the "really decent" acoustics of the new venue, introduce you to some guy who'd been a bass player for a dozen years and was now creating a cool new digital-music start-up, or debate the merits of pay-per-song versus subscription-based download business models. (There's a lot you can say about that.)

And while there were undoubtedly plenty of concertgoers who doubted Rhapsody's chances as an iTunes competitor, they would still have to admit that the company is building up some street cred.

Rhapsody has an impressive roster of industry veterans on its executive team, knows how to assemble a lineup of bands that even the average "Pitchfork snob" wouldn't sneer at, and can bring in a fun crowd of people to a show in the process. Even if RealPlayer still sucks, that's saying something.

The music sounded pretty good, too.

Look who was there on the red carpet! Must be hot in that suit.

(Credit: Caroline McCarthy/CNET News.com)

When I walked into midtown Manhattan's flashy Arena nightclub on Tuesday evening for an event celebrating the introduction of RealNetworks' Rhapsody music service on TiVo, a waiter approached me with a tray full of tumblers containing a clear liquid accompanied by slices of lime.

I was thirsty. "Is this water?" I asked him.

"No, it's an HD Crystal Clear Cosmo," he replied matter-of-factly, "so, no, it's not water."

A little bit of journalistic digging--i.e. finding a sign detailing the evening's signature drinks--yielded that that the HD Crystal Clear Cosmo consisted of vodka, triple sec, white cranberry juice, and lime juice. The Cosmos were accompanied by pale blue Rhaps-a-Tinis that consisted of Hypnotiq, vodka and white grape juice.

Personally, I never knew that vodka, white cranberry juice and triple sec were responsible for the crystal-clear picture on the awe-inducing Discovery Channel HD documentaries that I occasionally watch while eating take-out Chinese food in my apartment. Guess you learn something new every day.

On the left, 'HD Crystal Clear Cosmos.' On the right, 'Rhaps-a-tinis' with Hypnotiq.

(Credit: Caroline McCarthy/CNET News.com)

But I digress. The TiVo-Rhapsody event wasn't all that momentous, considering the news that Rhapsody would be fueling a TiVo-based music service had already hit the wires hours ago. This was, rather, a party, albeit one with an approximately 65-35 male-female ratio. (Hey, that's the industry.) TiVo president and CEO Tom Rogers and RealNetworks Chairman and CEO Rob Glaser made brief speeches--about which Rogers joked that "you can't fast-forward through" like you do with commercials on a TiVo.

The crowd was, overall, a suit-clad industry set. But I spotted a few fellow members of the online tech press: Gizmodo's Richard Blakeley, the Silicon Alley Insider's Peter Kafka, and camera-toting CrunchGear blogger Nicholas Deleon, who thought the Rhaps-a-tinis were gross.

(Credit: Caroline McCarthy/CNET News.com)

Then there was entertainment. The event featured a live performance by alterna-pop band Fountains of Wayne, and emcee skills courtesy of The Bachelor host Chris Harrison, who spoke of TiVo and Rhapsody as a "perfect match" in the vein of the reality show that employs him.

(Yes, he also made a few self-deprecating jokes about how the couples on The Bachelor don't typically last too long.)

The relationship analogies got a little bit uncomfortable when Harrison started talking about how TiVo kept forming alliances with other companies like Rhapsody and Amazon Unbox to boost its set-top service. "That TiVo's kind of a whore," Harrison joked. "TiVo gets around. It's my kind of guy."