Real Networks seeks alliance with Apple to join forces


It looks like Real has decided rather than compete with Apple and iTunes,
why not join one force to compete with the other?  Real is currently seeking alliance with
Apple to create a combined force against Microsoft's Windows Media Player.  However if Real does not succeed, it
will try to join forces with Microsoft against Apple's iTunes software and music
store.


 


Real networks is currently showing off its
RealPlayer 10 capabilities
such as AAC, MP3, MPEG 2/4 video,
Windows Media and real media support. 
If Real joins forces with Apple, it will add iPod support to its player,
join their music stores and make the iPod its main supported player for their
music store. 


 


Currently Microsoft has yet to start up its own music store for the
public apart from its small MSN subsidiary.  Microsoft has a clear advantage that
nearly every Windows user already has Windows Media Player.  They even got fined about $ 500 million
by the EC for bundling its media player with Windows which the EC claimed
as anti-competitive. 


Real Networks has invited Apple to join forces against a common enemy, Microsoft.

And if it doesn't, Real will join forces with Microsoft against Apple.

The power brokering was revealed in today's New York Times, on the basis of an email purportedly sent by Real CEO Rob Glaser to his opposite number at Apple, Steve Jobs. The email was leaked by an Apple staffer, the paper said.

The email proposes a "tactical alliance" between the two companies to create a combined force against Microsoft's dominant Windows Media Player technology. The digital media playback business has long been a three-horse race between Microsoft's Windows Media Player, Real's RealPlayer and Apple's QuickTime.

Microsoft has taken the lead by dint of its ability to ship its media player with Windows, a move that has nevertheless won the opprobrium of the European Commission. Last month, the EC decided to fine Microsoft €497.2m (1m) for bundling Windows Media Player with Windows, a move it believes is anti-competitive. It also told Microsoft to bundle other media players, which should benefit both Apple and Real.

Real's move to work with Apple is surprising not only for that reason, but because it is already touting its RealPlayer 10 for its ability to play all the key music and video formats, including Apple's favourite, AAC, plus MP3, MPEG 2, MPEG 4, Windows Media and its own proprietary formats.

But while Glaser has dismissed Apple's iTunes Music Store in the past, it's clear that the Apple service is eclipsing its rivals, including Real's own service, the subscription-based Rhapsody. Apple is expected to bring ITMS to Europe shortly, but Real is six months to a year away from a Euro roll-out, according to Glaser.

Microsoft may yet enter the music
download market itself - it already does, to an extent, through its MSN
subsidiary - and that's far more likely to hurt Real than
Apple.


 


I
don't like the idea of Real joining Apple after seeing how Real
networks has treated its users with every version of its software.  First it is difficult enough to get the
free Real Player software.  Then
once installed it runs an advertising message centre automatically when Windows
starts.  Unlike most other players,
its Real software is fairly crippled which requires registration to unlock its
features such as its graphic equaliser. 
However if they join forces with Microsoft, I doubt that they would be
allowed to get away with their current practices as I cannot see Microsoft
charging to unlock features in its player.


 

I would say that Real networks would have done much better
on their own if they offered their full player for free and just relied on
content and real server sales for profit.  Feel free to discuss and read
more about music download services on our Music Downloads, P2P & Legal Issues
Forum
.

Source: The Register

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