“RealNetworks Inc.’s shares rose more than 20 percent Monday after a published report touted the company’s subscription music offering,” The Associated Press reports. “Shares of the Seattle-based company were up $1.17, or 20.7 percent to close at $6.83 Monday on the Nasdaq Stock Market. RealNetworks’ stock, a high-flying Wall Street darling during the Internet bubble, has traded between $4.39 and $7.27 over the past year.”
“A report in the financial journal Barron’s argued that RealNetworks is an ‘inexpensive bet’ because of its 40 percent stake in the music subscription market that writer Andrew Bary contended is showing more promise,” The Associated Press. “While Apple Computer Inc.’s popular iTunes service relies on selling songs outright for 99 cents per song, RealNetworks’ Rhapsody service charge a $9.95 monthly fee to let people access songs for a set period of time. The company also offers the option to buy.”
Full article here.
MacDailyNews Take: In related news, KKD was up $0.44, or 5.87 percent, today to close at $7.94. By the way, the lottery is an “inexpensive bet,” too. Just don’t look at the odds. Now’s as good a time as any to cash out, Rob.
Related MacDailyNews articles:
RealNetworks’ CEO Rob Glaser grabs 3 of top 10 spots on ‘Dumbest Moments in Business 2005’ list – January 31, 2005
RealNetworks ‘Harmony’ stops working on iPods but nobody notices for a month and a half – December 15, 2004
Herald Sun: iPod users should ‘be wary of buying from Real’ – November 10, 2004
Bono-Glaser photo caption contest now open – October 25, 2004
Real’s CEO Glaser: ‘Harmony’ hack legal, Mac lovers are very sensitive to Apple criticism, and more – September 14, 2004
Analyst: Rob Glaser’s ill-advised war against Apple ‘is going to bite RealNetworks on the ass’ – August 30, 2004
RealNetwork’s CEO Glaser crashes Apple’s music party – July 30, 2004
Real CEO Glaser: Steve Jobs’ comments on Real ‘not succeeding’ are ‘ridiculously humorous’ – April 29, 2004
NY Times: Real CEO Glaser was close to having ‘iPod’ before Apple, but let it ‘slip through his fingers – April 24, 2004
Real’s CEO Glaser: Apple’s iPod/iTunes combo ‘threatens to turn off consumers’ – April 20, 2004
Jobs to Glaser: go pound sand – April 16, 2004
Real CEO Glaser begs Apple to make iPod play nice with other music services – March 24, 2004
Real CEO Glaser: ‘iTunes is only going to be used for playing songs you bought using the iTunes store – January 16, 2004
And how quickly will that golden news for Real turn to real dust, when users who cancel their subscription learn the ugly truth about “renting” music… and also neglected to pay extra to purchase it – oops, and then there’s the possibility that their player will no longer supported. They’ve got to buy a new player, too!
Okay, that last crack was a bit of wishful FUD on my part, but why not? Maybe they’ll choose an iPod…
40% of nothing is still nothing.
are the krispy kreme jokes still funny?
The subscription model is very indicative of the modern music industry. It’s not worth keeping.
Yes, the KKD jokes are still funny, but you aren’t. Glaser is a porcine ass – if that’s possible in nature – and deserves to be treated like the greasy, fat, bloated, and nasty bastard he is. Fsck Rob Glaser and the horse he rode in on!
No shit, if I was stuck with Real stock, I’d have a hard time ignoring this gift – I’d probably get out right now, while I still could.
What nobody gets about the subscription model is that these clowns can jack up the monthly fee anytime they like and subscribers either have to fork over the extra cash or loose their musicl.
In the long run a buy to own model is much better for the consumer. About the only thing I’d like to see Apple do different is maybe let customers try a song or album for a couple days for a very small fee.
Too bad for real/napster everybody understands the iPod is superior.
2 nuthin’s is nuthin!
What a joke. The stock jumps 20% not because RealNetworks produced a real result, but become some honcho analyst wrote that he thinks music subscriptions are “promising.”
That’s like saying, Microsoft jumped 20% because there was a report issued today that suggests that an unprecedented number of people are holding their breaths for Longhorn.
Hmmm. That’s not what I heard. I thought the 20% spike was due to acquisition rumors…
And in other news ….
When Glasser heard the news of Real’s (temporary) price spike …
Krispy Kreme stock rose 8% !!
(that ones for you. Piper !)
I WOULD BET THE MAJORITY OF PEOPLE WANT TO KEEP THE MUSIC THEY BUY…as for me, I know I’ve listened to my music over and over. My iPod in the shuffle mode has allowed to listen to stuff I haven’t heard in a long time (years) and it’s great to hear them again. So, the rent-a-song is not for me.
NEWS FLASH: Rob Glaser announced today that the purchase model for donuts is an outdated thing of the past. Says Glaser, “Oh sure, you can piss your money away buying these fucking delicious donuts but that’s yesterdays paradigm. I’ve negotiated a deal with the head honcho’s at Krispy Kream where they let me lick all the pans I want for just $9.95 a month!”
Rob you old pot licker you.
Barrons said Rob had 700,000 subscribers at almost ten bucks a month. Let’s say that grosses 70 million a year. Not bad for a business that doesn’t have any physical inventory and only sells electrons. Now the question is will they stay subscribers and will he get more. Is it much different from renting satellite radio, cable TV, or donating 10 bucks a month to your local public radio station? Some people will do it. Barrons faxes their reports like the one Monday to investors who may not know the difference between an iPod and a donut. Interesting that it gave the stock a bump.
All the subscribers will be pretty pissed the day that Real tanks, and has to close up shop. All those dollars spent, nothing to listen to.
When I spend .99 at iTMS, I archive my music files onto DVD and tuck them away out of the elements. In 20 years, I’ll still have my music. It’s really a no brainer.
Maybe we should encourage Apple to enable subscriptions just to put Real out of their misery.
My friend and I were talking about these subscription services, someone needs to crack the DRM on these comapnies and then u can have it back like the old Napster was. Only u pay per month, but then u get to keep the songs.
Just a thought. Not that anyone would try it
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