“According to documentation leaked to the New York Times, RealNetworks CEO Rob Glaser has sent an email ultimatum to Apple CEO Steve Jobs: Join a tactical alliance with Real, or we’re moving to Microsoft technology. The email, which was allegedly sent April 9, portrays a desperate Glaser, who seems to realize that upcoming Microsoft audio technology will allow Windows-based music services to plow aside competition from Apple and other company’s that don’t offer subscription-based offerings; Apple’s store, though extremely popular, is currently a loss-leader for the company because record company executives demand a high percentage of each sale and Apple must foot the architectural costs of the store,” Paul Thurrott writes for Windows & .NET Magazine.
[MacDailyNews Note: Yesterday, Apple’s Senior Vice President of Finance, Peter Oppenheimer particpated in Apple’s 2004 2nd Quarter Conference Call and stated, “iTunes Music Store generated a ‘small profit’ in 2nd quarter.”]
“People familiar with Jobs say it’s unlikely that Apple will reverse it proprietary strategy and join RealNetworks in an ‘us-against-them’ stand against Microsoft. For his part, Glaser says he’s surprised the email leaked. He describes the message as ‘reaching out’ to Jobs before he switches camps to WMA. ‘Why is Steve afraid of opening up the iPod?’ Glaser asked. ‘Steve is showing a high level of fear that I don’t understand,'” Thurrott writes.
“Expect Glaser’s email message, however, to fall on deaf ears. Aside from Jobs’ hubris and inability to see the big picture, Glaser isn’t helping his cause by repeatedly berating Apple for not opening up its iTunes store, iPod, and Protected AAC audio format. In England recently to push his new RealPlayer 10 software, Glaser again chastised Apple onstage for following the same unworkable strategy with digital music as it plowed with the Macintosh, which has fallen to record low usage and market share numbers under Jobs,” Thurrott writes.
Full article here.
MacDailyNews Take: Jobs is unable to “see the big picture?” If anyone, ever, could claim to be able to “see the big picture,” it is Steven P. Jobs. This has nothing to do with the Mac and licensing and OSes and the past. Too many iPods are being sold, Paul. Nobody who owns one will need WMA. And you know it. We do agree with Thurrott on one point: that Glaser is desperate.