Spurned by Apple, RealNetworks cozies up to Microsoft for portable music

“RealNetworks Inc., which is suing rival Microsoft Corp. for $1 billion, said it wants to use Microsoft’s software to help it sell music over the Internet for play on portable devices. RealNetworks wants to make its music files playable on devices that use the Windows Media Audio format, created by Microsoft, RealNetworks Chief Executive Rob Glaser, 53, said in an interview yesterday,” The Seattle Post-Intelligencer reports.

“Glaser earlier this month sent an e-mail to Apple Computer Inc. Chief Executive Steve Jobs seeking a similar relationship, which Jobs rebuffed. RealNetworks is boosting sales by getting customers to sign up for its Rhapsody music subscription service, which plays music on PCs only. Rhapsody doesn’t currently offer songs that can be listened to on the increasingly popular portable music devices, such as Apple’s market-leading iPod. But RealNetworks plans to add that feature to Rhapsody, and when it does, it wants the music to be playable on devices that use either Microsoft’s WMA format or Apple’s rival AAC (Advanced Audio Coding) format,” The Seattle Post-Intelligencer reports. “‘Our philosophy is to serve the consumer by being universal,’ Glaser said. ‘Whatever formats devices support, we view it as being in the customer’s interest to come up with ways to support those devices. This is not about theology of formats.’ Glaser declined to say when Rhapsody will be able to sell music for play on portable devices or whether he is talking to Microsoft.”

“RealNetworks doesn’t have the software it needs to sell music for Apple’s iPod. Glaser said he sent Jobs the e-mail to try to get Apple to open up its software and Jobs declined. Apple’s iTunes music service competes with Rhapsody, and Jobs has said letting RealNetworks sell to iPod users would erode iTunes’ 70 percent market share,” The Seattle Post-Intelligencer reports. “After Jobs declined, a person close to Apple gave the e-mail to The New York Times, that paper reported. Glaser yesterday criticized Jobs for refusing to open up Apple’s software and Apple’s decision to leak his e-mail, joking that that he’s ‘grateful’ for Jobs’ efforts to get him publicity. ‘Steve leaked it in a way that one might say is not the apex of scrupulous business practices,’ he said.”

Full article here.

29 Comments

  1. Fat pig, former-Microsoft fsck, Glaser sure picked the wrong guy to fsck with – Steve Jobs would eat that pig for lunch if he weren’t a Vegan. As it is, Jobs will settle for wiping the floor with that fat, stupid bastard.

  2. Thanks Fred, absolutely top drawer ” width=”19″ height=”19″ alt=”grin” style=”border:0;” />

    I still smile every time I see that idiot Ballmer running around like a lunatic.

  3. The article gives the wrong impression that RealPlayer will play AAC/Fairplay. It will only play unprotected AAC, which is not “Apple’s.” That is a huge factual error in my opinion.

  4. MS will give him his protected WMA license, but at the cost of him dropping any legal action.

    Must be a real bitch living between a rock and a hard place.

    Go join up with the WMA crowd, Rob – after all, it’s a proven success (!)

  5. so let me get this right – Real want Apple to open up the ipod, but has continuously slandered Apple and its CEO publicly. Now thats failed, Glaser wants to cosy up to M$ yet Real is suing them for a billion????

    Doesnt sound like the ‘apex of scrupulous business practises’ to me Rob. Sounds more like a rock and a hard place.

  6. Interesting that he is attempting to sue the very same company he is now trying to snuggle up to. That’s not what I would call ‘sound’ business reasoning (sorry about the bad pun).

  7. People here are stupid. Glaser is obviously in settlement talks with MSFT just like Mcnealy settled with a technology partnership. MSFT will write out a check for much less then 1 bil, license the codecs and everyone will live happily ever after.

    Btw, Jobs is an idiot for not opening the Ipod up. Rhapsody has 450,000 subscribers and is growing at 100k per Q clip.

    Anyone here old enough to remember when Jobs did not open up the Mac to Gates? PC clones steamrolled apple.

    Think about it.

  8. >”Anyone here old enough to remember when Jobs did not open up the Mac to Gates? PC clones steamrolled apple. “

    Yes there are those who are here that are old enough and remember it quite well and that’s not what happened.

    Apple is still here today, 4.6 bilion dollars in cash, produces the most cutting edge and easiest to use computers, the greatest software and most secure operating system in existance because they were smart and not hitched themselves to losers like Glaser or Gates.

    Yes Gates is a loser, because he isn’t liked by most computer users. Even a lot of PC people don’t like Windows anymore. They are tired of the virus, the patches, the exploits, the scares etc.

    Pop up windows, blame Gates. Adware and Spyware? Blame Gates.

    Hacker got in and erased your files? Blame Gates.

    Have to pay extortion to virus companies? Blame Gates.

    With losers like Glaser and Gates, why tarnish yourself?

  9. Oh really?

    What is the latest figure on Apple Desktop Marketshare? Less then 5%? I call that a moral victory.

    Technology is littered with innovative companies but Apple is on the brink of extinction. Keep innovating and creating new markets then watch Apple marketshare shrink.

    Apple may be innovative but they lack buisiness sense.

    Glaser and Gates losers? Hardly. If you know anything about MSFT then you will realize that Glaser spent 10 years at MSFT building an Empire. Glaser left when Gates did not see the significance of digital media. Glaser is partly to blame for MSFT’s dominance which is the true irony here.

    A settlement is on the way and it will be similar to the SUNW deal.

    Apple will always be a brides maid.

  10. jap.. you are living in bill gates’ fantasyland..

    no i’m not saying your post was untrue.. in fact it IS true..

    look around… everything besides Apple are MIcrosofts accidents.

    Yes, cheap computers sell faster than exp ones..we get it.. yes Business customers could care less about ease of use.. or *pfft TCO…

    bill gates is a damn good businessman…

    but implying that Real will kick ass by getting into bed w Bill Gates for a little make up sex is NOT NOT NOT cool..

    guess what..

    real’s software sucks ass..

    microsoft will release a video ipod and pull an xbox “we never intended to make money at first.. it will take a few years”

    and the more apple does its HP thing and free song thing and wma-convert thing.. oh yeha.. the ipod..right… the more they will grow.

    this is really a platform agnostic game, when sound can be converted so easily!!

    this is apple’s advantage! no more MS monopoly bullshit..

    why do you think their MSN music club is not an integrated system like iTunes..

    oh yeah.. they’re in some..*ahem .. legal trouble with anti-competitive practices..

    so they won’t be able to put a commercial venture in their OS..like apple

    they WILL put a link to the music club though lmao..

    oh make a .1 release and make msn the homepage..that should get a few sales

  11. Hold on Hoss! This ain’t Bonanza!

    I am not implying anything about Real except that Glaser has to make a decision and he has made it.

    Interoperability? Have you ever heard of that term?

    Interoperability is the key to widespread consumer adoption of ANY technology.

    Essentially, we have only 2 camps left now, ok?

    ACC (wrapped in a vary of DRM wraps) vs WMA

    Sure, Sony has its own priorities, etc.

    Anyoldhow, what you fail to understand is that the future of digital music is subscription NOT 99 cent downloads on an IPOD. Would you wake up?

    A consumer paying 10 bucks a month for subscription portable is the future. Jobs realizes this but he can’t fight it. The “Ipod Killer” is a portable device that stores subscription content.

    Glaser is doing what’s best for his company. Jobs is making the same mistake twice by not opening up.

    Answer me this?

    We all are fully aware that iTunes is a loss leader for Ipod Sales? YES ok, no debate.

    So it is in Apples best interest to make iPOD the standard in portable devices. That means supporting EVERY digital music store and SERVICE.

    Glaser is right on this issue.

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