
Has Real adopted the "tactics and ethics of a hacker," as Apple puts it, or has the Mac maker taken a page from its nemesis Microsoft in strong-arming the competition, as some industry analysts suggest? Both? Give us your take.
July 30, 2004
Music downloads have begun to put their renegade origins in the past. Internet song sales could reach $270 million, more than double the takings from the previous year, according to one new report, rising to $1.7 billion by 2009. More than any other company, Apple Computer is poised to cash in on that trend.
With success comes envy. RealNetworks, a digital media pioneer, has struggled to find its way in the music distribution business. First, it battled Microsoft over dominance in digital streaming formats. Now it's facing off with Apple over interoperability between its own music format and the iPod. Will the strategy work?
Apple has sold more than 3 million iPods, taking about 25 percent of the global market for digital music players by some counts, and the company claims its iTunes Music Store accounts for some 70 percent of all songs bought online. But can Apple stay on top in the face of renewed competition from Microsoft, Sony and others?
Looking for a digital music standard? How about MP3s? Still the dominant format, MP3s are falling out of favor with some listeners who say they've found better compression technology elsewhere. Major format battles still loom for the industry, offering a major opportunity to the company whose technology comes out on top.
As giant corporations fight for dominance, they may wind up the biggest losers. Standardization efforts are progressing slowly, and if history is any guide, don't expect results soon. The top problem: establishing copy protection technology that works everywhere. 
Apple's musical iPod unveiled
Apple unveils its first consumer digital device, the stainless-steel iPod, capable of storing up to 1,000 songs on its hard drive.
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Gadgets in tune at Macworld
New gadgets and software for the Mac were on hand at Macworld 2004 in Boston. ZDNet's David Berlind uncovers the latest, including full-circle iPod speaker systems, software for budding rock stars and the ultimate mobile multimedia editing suite for the video pro on the go.
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Real changes course with open source
RealNetworks CEO Rob Glaser sits down for a Face to Face interview with CNET editors. In this 20-minute conversation, Glaser talks about his company's new open-source strategy and shares his views on MPEG-4 adoption and digital rights management.
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Real announces Helix media player project
At the LinuxWorld conference in San Francisco, CNET's Brian Cooley talks with the general manager of RealNetworks' Helix technology, Kevin Foreman, about a new open-source program that's aimed at creating a media player for Linux.
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Apple launches iTunes Music Store and new iPods
Apple CEO Steve Jobs announced on Monday the launch of a new online music store that features 99 cent downloads and a 200,000-song library. He also introduced three new iPods, one which has 30 gigs of storage.
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-Until Apple starts locking their customers into a proprietary system that is the defacto standard...oops FairPlay isn't the standard nor is anything else. In fact they aren't even trying to make FairPlay a standard. They aren controlling their property. Boo Hoo.
-Until Apple starts playing slime ball BS tactics...hmmm not yet.
People are just pissed that Apple has finally top dog in one market and its eating you guys alive. FACT: If you don't like Apple or the iPod go with Napster or MusicMatch. Finally Apple is in the driver?s seat and everyone is currently relegated to the bottom of the totem poll so deal with it and stop ********.
By not taking advantage of their lead, Apple is going to doom itself to irrelevance yet again, just like they did with the Mac. They didn't want to license, they wanted to control both the hardware and the software. Where did that get them? 3-5% of the market share, that's where.
It's true they are the early leader, but what happens when everyone's fascination with the over-priced iPod wears off? Let's face it, as cool as it is, the iPod is a fad. People eventually aren't going to care what the player is, as long as it's easy to use with the features they want. People care about their music, not so much what it's playing on. And really, all iTunes is, is a method to drive iPod sales. When the iPod killer comes along, and it will, where does that leave Apple?
It's really a shame, because Apple over the years has built some really great stuff. And you have to give them, and Steve Jobs, credit in this case for forcing the industry to warm up to the idea of online distribution. But by wanting to be like the Microsoft monopoly, (as much as Apple denies it), they're relagating themselves to also-rans. The days of controlling the hardware and software are long gone, if they ever even existed at all. Wake up, Apple! You can use the lead you have to become the standard, or you can stubbornly refuse to acknowledge reality and sit and watch your competition leave you behind, AGAIN.
I don't see Apple in the music business forever, but should make their name while they can.
Apple certainly wasn't first in door in the mp3 download business, but Apple became the most popular by 1)creating an easy to use software interface (iTunes)for creating and managing music files, 2)creating and selling easy to use, attractive lightweight hardware(iPod) that enables user to bring an entire music collection and then some on the go, and 3)having a large catalogue of licensed popular tunes to sell at its disposal at an affordable price. Then Apple makes Bill Gates and Steve Balmer really fume by making this technology availble for Windows users! Apple being Apple, of course creates a fun piece of hardware that is only compatible with its own music file technology and nobody else's. Everytime you buy an mp3 from iTunes and download onto an iPod, you're contributing more to Apple's revenue stream.
Real Networks comes along and reverse engineers the technology to enable music files from its own Rhapsody music service to be able to be saved and be playable on the iPod (not only pissing off Steve Jobs, but Bill Gates and Steve Ballmer, too, because Microft didn't either think of it first or didn't get the product ready yet and out the gate before Real, its other mortal enemy in this market). Apple gets wicked mad because every Real music file on an iPod is revenue denied to Apple and claims Real must be infringing on its monopoly, er, ah, excuse me, intellectual property because they discovered how to make their product compatible with Apple's hardware.
For a start, Apple has nothing to fear because iTunes is still easier to use than Rhapsody and both have virtually the same music available. Rhapsody would have to compete with iTunes on ease of use, selection and price. For the time being, Real's little hack just made it possible for its customer base, whatever pitible size compared to iTunes customer base, to transfer their files to an iPod and have a 'real' cool music player to sture their tunes.
The next problem is going to be what big bad Microsoft comes out with next year. It may be a total proprietary system with some electronic entertainment partners or like Real Networks, they will rework their own Windows Media Audio or perhaps create something else, so it works in the iPod. Chances are, whatever it is, it will suck big time right out the gate and fall flat on its ass (track record shows this is not unusual for them). But if they stick with it, the Microsoft version will either improve and steal revenue from Apple big time or continue to suck and be a drain on Microsoft's resources and revenue.
Apple technology doesn't spread viruses, cause upgrade jitters,
or cost a bazillion dollars to license, or promise stuff that it
doesn't deliver and probably never will.
Apple technology just works. How very un_Microsoft can you
get?
Off the soap box and going to bed now.....
Let Apple do the same - enjoy the lead they have created for a few years, then if it hasnt led to better products and offerings from other companies then make them charge companies to gain access to the goods. Its got to be on Apple's Terms. If you force any company too early they are going to make sure that you pay - making their products not work with yours or charging you so much you cant afford to gain access to the goods.
If you open it up directly now before the market has not been established well then you are going to have many crapy programs out there and the customers will be turned off and the market might be become what it might have been. Case in point - look at how Microsoft has licensed its DRM software to everyone under the sun - you think they did that because they are nice people - no, they did that because it gives them a foot hold in a market where they have none.
And look at the products that use that technology - has anyone really had some kind of success. That On2 company or whatever its called over in England had online music downloads for over a year using MS DRM software - they have 1-3 hunderd thousand songs downloaded - Apple comes in and they get 3-5 hunderd thousand songs in the FIRST WEEK.
Look at the car industry - Ford made the first car, compition has drivin that industry to downsize the different companies and its become a very competive market with more inovation coming out of these companies each day - it works this way, just leave well enough alone until it becomes a problem and when companies try to compete in an established market the controling company does things that are illegal - ala M$...
Off the soap box and going to bed now.....
Again, its all about their products & not US !!!
Take note consumers !
competition by buying up other music systems like
Microsoft buys up companies with good products just to
kill them because they are competing with an inferior
Microsoft product.
Besides, Apple doesn't suck nearly as much as Microsoft
does.
sitting on HUGE profit margins and plenty of money in the bank.
They have said they don't want to compete with MS and DELL.
They have and will continue to cultivate an "exclusive" status.
They don't want to be FORD, they want to be Mercedes or Lexus.
Apple has been on the forefront of many technological
advancements lately, digital music being only one of them.
Apple will continue to focus on producing the most
technologically advanced product on the market place in
conjunction with their "exclusive" motif. Apples loyal fan base
has kept them in business and they will continue to cater to that
base If they convert some more with iPod and iTunes, great.
Apple will not license its FairPlay DRM. They are too concerned
about the entire product-how software and hardware interact.
Someone will come out with an MP3 player that will be cheaper
and maybe be superior, but it won't bother Apple. Then more
pundits will predict Apple's downfall, but they will survive.
other suckers out of it, it works because apple keeps full control
to make sure everything works for consumers like me and there
is nothing like it elsewhere. Even if they are a monopoly so what
they lead they don't steal ideas from anybody, everybody is
behind because they have no vision no logic no consumers
needs in mind.
Has Apple ever bought out or tried to crush their competition?
Has Apple ever been convicted of being a monopolist? Has Apple
ever done anything to stifle a competitor from offering the same
products and services as they do, or to hamper a competitor
from bringing a product or service to market?
No, the simple fact is that Apple has a dominate position in the
digital music market because they offer a product, the iPod, and
a service, the iTunes Music Store, that are far superior and a
must have for consumers. Beating your competition by building
a better product and offering superior service should be
applauded. And it's the complete opposite of Microsoft's way of
doing business.
unlawful business practices, and aren't capable of innovation.
That's not Apple!
non-invasive, non-spyware-installing, non-adware-installing
pieces of hardware and sofware that inspire great loyalty with
users. Unlike *everything* Real has ever done, and *most* things
Microsoft has done.
I'm not going to stop using the superior music hardware and
software Apple just because it's in a dominant market position.
I use "PC" computers for a simple reason. Options. I like the fact I can use any kind of hardware and/or software. I like the fact I can run all the new software on even windows 95 and vise versa. I enjoy having options, not having to feel like a sheep in a flock of drones. I like options therefore I do Windows.
>>yes, they bought out most of the top DCC tools in order to dominate the editing and effects business and have crushed support for othjer platforms - including Shake, FCP, Logic Audio, Chaile, etc"
They were NOT competition to Apple since Apple had no such products to begin with. They baught them to get a head start in the business, not for the sake of crushing them out of existence like Microsoft does.
"Has Apple ever been convicted of being a monopolist? Has Apple ever done anything to stifle a competitor from offering the same products and services as they do, or to hamper a competitor
from bringing a product or service to market?
>> yes, while they are using open source products to build OsX they are downrright rude to open source developers, in fact they take moves to make sure we cant compete with them - so they can build their monopoly"
Give an example please. As far as I know Apple release every update they make to OS X core in the form of Darwin. The Gui is what they keep to themself, and that they developed themself.
hardware, software, etc. from concept to finished product. Apple
deserves to reap the benefits of its labors without having
someone else nose in on their work. Seems like they're all poor
loosers and show themselves to be unable to create their own
venue instead of trying to push in on someone else. minutes ago
they were all rubbing their hands gleefully thinking Apple was
dead. Well bravo for Apple. Let them all eat cake!
Had to comment this since the "chart" (haha) is obviously made in 5 minutes from two bits of data :1
- Everyone step back and take a deep breath
- by tsm26 August 1, 2004 10:33 PM PDT
- Why is everyone defending their systems like it is something personal? I personally own a Windows machine and a Linux machine and have no problems with Macs. I like Windows because I can find free software easier and can build my own machines, but that isn't for everyone. Windows XP runs great for me, and unlike some people think here apparently, everything I plug in works, and works the first time. What I think is that it is all about preference. Apple makes some great products, especially their notebooks and monitors. At this stage in the game, OS X and XP are both great operating systems. I can do anything I want in XP and I am used to it, so I just have no reason to switch to Apple/Mac, but if you want to switch, go ahead. Everyone says, this on sucks or that one sucks, but it is all just stupid talk. Both operating systems are very stable(XP and OSX), and there are great choices for both. I have a mini Biostar PC for instance that is brushed steel and is very stylish. I have a great HP photo printer, a digital camera, a wireless router and an optical mouse. I run a web server on my PC, play games, and do video editing. You can do that either on a PC or a Mac. Hey you could do all that except for games on Linux also. Pick your poison. It isn't as much the operating system as the hardware you are using. When people say "with Macs you just plug it in and it works" don't know anything about computers. Most problems with incompatibility is not the operating system but the hardware whether it be the USB controller, the motherboard, or whatever. As for me, I just check to make sure what I buy is not a problem child hardware piece. That is one thing that is nice with Macs is that it is so proprietary that you can guess that every piece will work. However, you don't have as many choices. Even Adobe is pulling things from the Mac, which is interesting. What would Apple do if they needed to develop their own Photoshop? What I am saying is neither platform is "the best" for everyone. They both can run everything the other can.
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