Telefonica Digital and Rhapsody have struck a wide-ranging strategic agreement that will pave the way for Rhapsody-owned streaming service Napster to enter Latin America.

The international expansion will come as a result of the transfer of hundreds of thousands of existing customers of the Sonora music service – owned by Telefonica’s Terra subsidiary - which will be replaced by Napster.

Telefonica gains an equity stake in Rhapsody as part of the deal and will also be able to offer bundled ...