The groundwork has already been laid and now it’s official: RealNetworks (NSDQ: RNWK) is spinning off music service Rhapsody in the hopes of giving both companies a better chance at success. Real will reduced its interest in the Rhapsody America joint venture to below 50 percent to match Viacom’s, giving up control of Rhapsody and making room for more investors. Real will contrbute some cash; MTV Networks (NYSE: VIA) will put in advertising. The new company, which will operate independently, will be known as Rhapsody

The SEC filing comes scant weeks after the resignation of founder Rob Glaser as CEO but was well in the works before he gave up the operating role, keeping that of chairman. Acting CEO Robert Kimball described the decision to remove Rhapsody “as a significant first step in making RealNetworks a more focused and profitable company”—stressing that the digital music service is, from Real’s perspective, being given everything it needs to succeed as “the largest pure play digital music service in the market.” I’m sure he means it but in reality that may be a stretch. What would give Rhapsody the ability to succeed on its own when it hasn’t been able to thrive under so many other circumstances? More to come.

• MTVN And RealNetworks Talking On Reorg of Rhapsody Music JV; Could Include Spinoff/Sale