December 5, 2005 6:10 PM PST

Glaser turns wrath on Apple, Jobs

SAN FRANCISCO--Rob Glaser has made his peace with Microsoft's Bill Gates. Now, the RealNetworks chief executive is turning up the rhetoric against another technology icon: Apple Computer CEO Steve Jobs.

At the Digital Living Conference here on Monday, Glaser told a packed hotel ballroom that Jobs & Co.'s refusal to make the iPod compatible with music services other than Apple's iTunes was "pigheadedness." Glaser also said that Apple's unwillingness to cooperate with other online music vendors promotes piracy of copyrighted materials and will eventually draw the wrath of consumers.

Click here to Play

Video: RealNetworks' CEO Rob Glaser
"Apple's pigheadedness."

These are heady times for Glaser and his Internet multimedia company, which announced in October that it had reached a favorable settlement with Microsoft on the $1 billion lawsuit RealNetworks filed in 2003.

Under the deal, Microsoft agreed to pay $460 million in cash to settle the antitrust claims and will also pay $301 million to support RealNetworks' music and game efforts. In addition Microsoft will promote RealNetworks' Rhapsody subscription music service on its MSN Web business.

Perhaps Jobs unknowingly helped RealNetworks and Microsoft find common ground. In 2004, Glaser appealed to Jobs to make the popular iPod compatible with other music services. Microsoft has long sought to strike partnerships in the digital-music arena to help it challenge Apple's enormous lead in the sector.

Jobs responded by telling his shareholders that a deal with RealNetworks simply was "not worth it." Glaser didn't let that stop him. In July 2004, RealNetworks released a version of its music download service compatible with Apple's iPod--without the permission of Jobs & Co. Apple has called it "hacker tactics" but hasn't filed a lawsuit.

Following Glaser's presentation he was asked whether Apple's unwillingness to allow others access to the iPod, the hot-selling digital music player, was hurting RealNetworks.

"We think Apple Computer, and Steve personally, are making a mistake by making the software proprietary," Glaser said, noting that RealNetworks would continue catering to users of Macintosh computers. "There's no reason we should penalize Apple customers for Steve's pigheadeness."

In an interview following his presentation, Glaser called for the music industry to pressure Jobs into opening up the iPod to other online music vendors.

"Steve makes for a good pinata because he's taken a position against interoperability," Glaser said. These people "should be pressuring him to change because they have leverage over him. Apple being on its own in term of interoperability makes piracy more compelling for consumers. Because, hey, if I take all my MP3s from this illegal site or that illegal site, they'll work on the iPod or anything else. Whereas if I buy them legitimately, they'll only work at one place."

Glaser said that consumers could blame Apple if they can't hook up their music with their other digital content should such convergence become popular.

Glaser was at the conference to debut a revamped Rhapsody digital music service, which will let people search and listen to its catalog of songs from a Web page, instead of requiring them to download software. RealNetworks is hoping that an overhauled Rhapsody site will help it stand apart from competitors, which often require users to download software before they begin listening to music.

In an effort to draw attention to the site and compete with iTunes, RealNetworks is allowing visitors to stream 25 songs for free.

"I don't think anyone offers anything freer than 25 (songs)," Glaser told the audience following his speech. "We're the cost and price leader."

But can RealNetworks make money with such a strategy?

"We already know from having done six months of work that the economics of getting consumers to use free services are good," Glaser said.

Among the strategies available, RealNetworks can sell ads to the site or steer customers to premium services that company could charge for.

"Google had a ubiquitous strategy before a monetary strategy and last I heard it worked out for them," Glaser said.

151 comments

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What a baby
Seriously... what a baby. Imagine Apple wanting to build a product that encourages the purchase of their own hardware, which happens to be pulling the big dollars and keeping stock price high. If Glaser could do the same thing he would, or face the wrath of his shareholders.
Posted by Jeff Putz (236 comments )
Reply Link Flag
What a baby
I agree with you. He got his butt crushed by softy & thinks now he is the supreme ruler in music player business!!!
Posted by Intelrules (33 comments )
Link Flag
well
if we remember history the last time Jobs made a system with their own software and specific hardware...oh yeah the Mac which led to Jobs leaving Apple. What goes up comes on down too.
Posted by chuchucuhi (233 comments )
Link Flag
Déjà Vu?
Didn't Glaser [practically] say the same thing a few months ago? Get
over it already. If Apple is going to 'open up' their format, they'll do
it on their time table, not because of Glaser's whining.
Posted by macnut222 (12 comments )
Reply Link Flag
Ease of Use
I don't have a big problem with Apple's iPod policy. It keeps things
simple, iTunes is still the easiest jukebox software to use, their
prices are competitive and I know who to contact if their is a
problem. No finger pointing, just contact Apple.

Mr. Glaser, if Apple were to open the iPod, who's software would we
have to use to load our iPods with Real's music? Real's? Like I need
or want another program to learn... Get a life or better yet, come
up with a product people actually want to buy!
Posted by davidlawless (12 comments )
Reply Link Flag
To hell with them all
Have no intention of paying for any of this lower quality DRM encumbered over price crap Apple, Real, and Napster are selling.

Apparently ear bud make it a lot easier to damage ones hearing. All these people have damaged their ears and are content to listen mediocre audio quality because they can no longer tell the difference.
Posted by unknown unknown (1793 comments )
Reply Link Flag
Actually...
Most people can't tell a great difference between music from a CD
and music from an MP3 encoded at 128Kbps. It's one of the things
that makes the MP3 format work. I can encode my entire CD
collection, put it on a player I can carry with me and listen to music
that sounds almost exactly the same.

Earbuds don't damage the ear. Listening at high volume for
extended periods of time damages the ear.
Posted by nightveil (134 comments )
Link Flag
AAC encoded
I don't know if you noticed or not, but when you purchase music from Apple, it is in AAC format. AAC is far superior to MP3. AAC at 128kbps is indistinguishable from the actual CD recording. I've ripped my CDs in AAC format because it sounds much better than MP3. Besides, if you pay for CDs, why not pay for AACs? Try it out and then comment on your experience.
Posted by Awesomebase (99 comments )
Link Flag
hearing
your just jealous of us listers of the itunes/ipod!.....huh!.....eat my
ipod dust!
Posted by xpblue (6 comments )
Reply Link Flag
RE
I assume you ment to reply to me. No I am not jealous. If I wanted an Ipod I could very easily go to Apple's website and buy one.
Posted by unknown unknown (1793 comments )
Link Flag
He's just envious.
I have refered non-iPod owners to iTunes when they couldn't get
their iRiver to work. I have even used it with my mother's Rio. While
I have Realplayer on my Mac, if they don't get on the common
format bandwagon, they will fall to the wayside like Sony's non-
MP3 player.
Posted by Scott Selby (4 comments )
Link Flag
Open the iPod?
The iPod is already open to other music stores, namely Magnatune and Audio Lunchbox. I am certain that there are several others.
Posted by OscarWeb (76 comments )
Reply Link Flag
eMusic
Also works with the iPoo.
Posted by ballssalty (196 comments )
Link Flag
Magnatune
the site is great. :-) I purchase a lot of my music there. Just
goes to show what can be done if you dump the DRM garbage and
get back to providing a quality product at a good price. Jobs and
Glaser could both take lessons from John Buckman.
Posted by protagonistic (1427 comments )
Link Flag
...real player? ugh.
real player is probably the worst media player out there. i absolutely hate it. its an ad-tangled resource hog that is just ANNOYING...it seems the annoying part comes straight from the man who runs it.

iTunes is defiantely the best media player and i hope the iPod remains exclusive to it.
Posted by knoxindy (2 comments )
Reply Link Flag
At least Microsoft
rises about the slop of the scum-bucket that is Apple.

OK - so maybe not. But it's amazing how the Apple zealots & apologists come out for this story.
Posted by (409 comments )
Link Flag
I agree
I used to have real installed on all my computers but when i used
Real(Very Rairly) then quit out of real i had to restart my computer
so i say screw real real is the one who is piggheaded. NOT apple.
Posted by (16 comments )
Link Flag
Glaser needs to retire....
I couldn't agree with you more!

I've been an active consumer enjoying computer audio for some 15 years now and all I can ever remember was Real Networks holding their hand out and charging people for anything they could randomly think of...including my breath if they could fathom a way.

I personally don't feel a need for playing music outside of my computer but admire Apple for innovation, winning strategy and a clear mindset for the future.

Glaser is a whinny @#@%$ who has obviously hindered Real Networks. Somebody throw him off the board, duct tape his mouth and throw him in a closet somewhere. Maybe give him some cheese and crackers to go with his whine?
Posted by (8 comments )
Link Flag
itunes the best music player?
I honestly don't know where people get off saying that itunes is the best music player around.

It's clunky and cumbersome, and is only good for buying music... it's basically a giant playlist that, in it's basic, default form, takes up most of your screen. There's absolutely nothing special about the way it plays music, except for the idiotic 'party mode' which is just a glorified shuffle (like how the ipod shuffle is a glorified lack-of-a-screen).

RealPlayer USED to be the worst media player out there. It has gained ALOT of technological ground since it has been based off of the open-source Helix (I think?) software, which is an OSS media player often included with Linux distributions.

It is the ONLY player I have seen that saves a variable length of a stream, DVR style, for rewinding. As such I think it is one of the best streaming applications availible currently.
Posted by DraconumPB (230 comments )
Link Flag
Um, competition never rests
This moron just got a bunch of cash from Microsloth. He now
wants the leader in the MP3 arena to slow down and let him catch
up...take your cash and invent something better to compete. Quit
looking for another handout!

This is not leadership...it is whining like a little bi#$t.
Posted by Brian Sorby (1 comment )
Reply Link Flag
Real Networks? Try Real Closed.
Currently their Web site does not allow Mac and Linux users to
purchase and download music because it relies on the Windows
Rhapsody client for that functionality. RealNetworks will not
comment on when, or even if, a Mac/Linux client may be available.

Yeah, I know, Mac/Linux have small market share. Just like Real.
Posted by open-mind (1027 comments )
Reply Link Flag
EXACTLY!
What in the world is he talking about? How can he moan about
compatibility when his own service is only available on one
platform! Idiots!
Posted by (96 comments )
Link Flag
i really agree
used to have real installed on all my computers but when i used
Real(Very Rairly) then quit out of real i had to restart my computer
so i say screw real real is the one who is piggheaded. NOT apple.
Posted by (16 comments )
Link Flag
Rhapsody.com is now compatible with Linux, Mac's
Real just switch from using that stupid Rhapsody client from a web based solution which supports Windows, Linux and Mac see <a class="jive-link-external" href="http://home.real.com/product/help/rhapweb/en/system_requirements.htm" target="_newWindow">http://home.real.com/product/help/rhapweb/en/system_requirements.htm</a>

and see the News.com article <a class="jive-link-external" href="http://news.com.com/RealNetworks+moves+Rhapsody+to+the+Web/2100-1027_3-5980908.html?tag=st.ref.goo" target="_newWindow">http://news.com.com/RealNetworks+moves+Rhapsody+to+the+Web/2100-1027_3-5980908.html?tag=st.ref.goo</a>

I must add that I don't like Real Networks and their stupid CEO but I had to bring up the facts.

~ Bob
Posted by (43 comments )
Link Flag
Pigheadedness
Glaser is being emotional and entirely misses the point. The sole
purpose of the iTunes Music Store is to sell iPods. That is all it's
ever been intended to do and every decision Apple has made
regarding it supports that purpose. As a revenue model on its
own, it is simply not worth it - Apple makes very little money on
the music sold. Opening it to other players and other
applications dilutes and defeats that purpose, and that is why it
hasn't happened. Introducing other arguements and issues is
politics and debate tactics, intended to muddy the waters and
stir up response.
Posted by CAllenH (7 comments )
Reply Link Flag
Re: Pigheadedness
Mr. Allen:
My response to your post is: Amen! Amen! Amen!
Posted by Eucharist (1 comment )
Link Flag
Rhapsody Sucks
So I was curious and tried it today. I have to listen to the music
from the web site and pay a subscription fee. Unfortunately,
Microsoft's $400 million will keep them in business longer.
Posted by bdkennedy1 (53 comments )
Reply Link Flag
RE: Rhapsody Sucks
From an artist's standpoint, iTunes is exactly sixty times better
than Rhapsody, music match, or any of the other services.

My son's band (Self-Titled), has been getting sixty cents per song
download from iTunes through CD Baby. Rhapsody downloads are
worth a penny each.

Do the math folks. Indy artists get a fair shake from Apple.
Posted by revry (12 comments )
Link Flag
Real gets it right
Where Real is going with Rhapsody is a huge step in the right direction. The user doesn't need any bloated software -just a browser. Also,for the first time, I can access a legal music subscription service from within Linux. Now, if only they'd also port the ability to download music and burn cds.
Posted by faithjester (4 comments )
Reply Link Flag
Yeah
How do Mac or Linux users get there music on an ipod or a WMA
player?
Posted by Peter Bonte (314 comments )
Link Flag
That's a good one!
"The user doesn't need any bloated software -just a browser."
My lord, I sure hope you aren't referring to the biggest piece of
bloat on the planet, Internet Explorer!
And if you were, what in the heck are you using to PLAY the
music with? Hmmm?
That's right, a SECOND piece of software!
If you can prove to me that it's MORE efficient and LESS bloated
to use TWO software packages than one, then I'll listen to you.
Until then, let us review basic addition. Using two programs to
manage your entire music experience is using one more
program than is necessary.
Next!
Posted by GGGlen (493 comments )
Link Flag
Beat Apple? Build a better product.
Consumers don't want choice. They want a good product.

The iPod and iTunes are fantastic, user-centric products. They're
winning fairly: on merits. Word of mouth would still fetch Apple
a healthy market-share because the products are so good.

Glaser probably gets this. But if he admits it, he admits Real is
basically worthless.

Build a better experience. I'll buy it. But the idea of Real or MS
being the ones to that to market is laughable.
Posted by mgreere (332 comments )
Reply Link Flag
Same goes for Windows...
..I am guessing you didn't see this coming. Wanna beat Windows, build a better product ;), nobody wants crap even if its distributed free.
Posted by FutureGuy (736 comments )
Link Flag
Ipod useage
How many people who have commented so far have an Ipod now, or have owned one? If you use a different player, or dumped the Ipod for one, why?

I have a Samsung YH-925GS and I love it. Napster is so-so but the player itself is fantastic.
Posted by (20 comments )
Link Flag
He complains Apple is proprietary? So what is Real Player???
Open source?
Posted by Jill_Gates (17 comments )
Reply Link Flag
Can anyone blame Apple?
I mean, this is the company that began the personal computer
revolution with the Apple II, and then the Macintosh, only to be
undermined by Microsoft with Windows. It was on track in the
early 80s for the market share that Microsoft now enjoys, and
got blindsided because they asked Microsoft to develop a
spreadsheet program for their then prototype Mac. Decades
later, Apple finds another niche with the iPod, and once again,
competitors start whining because their product isn't as good.
Furthermore, are Real media files not proprietary? Are you not
locked into using RealPlayer everytime you encounter one? Does
Windows Media Player play QuickTime files? Um no. Microsoft,
Real, and especially Sony are completely pissed because a
company they had written off as a lost-cause years ago is now
out performing them. These companies need to stop whining
and let Apple have their long-deserved time in the spotlight,
which always seems to be taken away from them by competitors'
underhanded tactics.
Posted by e30mpower (1 comment )
Reply Link Flag
AMEN TO THAT!
I dont think I could have said it any better. Apple just keeps inventing and innovating. Wish some of these other companies would get a clue and do the same...
Posted by pilaa (213 comments )
Link Flag
So I'm curious...
How much does your band get when people burn a track with Rhapsody? Undoubtedly more than a penny... but...?
Posted by ThatAdamGuy (21 comments )
Reply Link Flag
Real sucks balls anyway.
Real needs a damn better product! Real is utter tripe!!
Posted by UberWang (1 comment )
Reply Link Flag
REALly now
It's all about the software. Whoever has a better solution gets the sympathy from the consumer. Real started sucking when they started questionable "marketing" tactics with their downloads.

The argument that people are going to steal songs if they can't get music off Apple's store is just "pig-headedness!"

When was the last time you could not rip music from a CD that you BOUGHT and load that into any MP3 player?

Oh, we want convenience? In that case, BUY AN iPOD and use the iTunes Music Store. Hello, news flash: Convenience costs money! Depending on one's budget, there's a many different iPods to choose from and the cheapest one ain't that bad!

Duh!
Posted by npxzbebq (78 comments )
Reply Link Flag
Glaser is geting desperate...
... And he should be.
Posted by Earl Benser (4342 comments )
Reply Link Flag
desperate??
He is sitting over 600 Million that he got from MS, he is not desperate. If MS can be sued for keeping certain portions of its server communication protocols closed. Apple should be sued for keeping its devices COMPLETELY closed.
Posted by FutureGuy (736 comments )
Link Flag
He don't know what he's talking about
You can get Itunes music on ANY MP3 player. You just download the song, burn it onto a CD using ITUNES, this removes the copy protection, then copy the song onto your computer, it will now be .AIFF format. From there use a program like AUDACITY to convert it to .MP3 or any other format and upload it you your portable music player. Any song from ITUNES must be burned to a CD to remove copy protection. It is that simple...This guy don't know what he is talking about
Posted by rjmastrianni (10 comments )
Reply Link Flag
Who would really benefit??
Only Apple's competitors would benefit from an open iPod/
iTunes Store. Consumers wouldn't necessarily benefit as it would
surely bring confusion, inconsistancies and problems. Apple has
been hugely successful because it has control over the 'iPod
experience' from usage to purchasing and that conrol offers
value. iTunes pricing is reasonable and the selection is fairly
large plus you can buy and (legally) rip most anything else you
may want.

I don't think many iPod owners are complaining they cannot use
Real or any other competing service. It's mostly people with
competing players or stores who wish things were different.
Posted by edgedesign (276 comments )
Reply Link Flag
$$$$$$$$
If they where to open itunes or ipod then apple would be forced to
raise the price on every thing music to including the songs. in
stead of them being 99¢ they would be like $1.50 or cds instead of
them being about $9.99 they would be about $14.99 or more!!!
Posted by (16 comments )
Link Flag
Pegheadedness
Rob Glaser is just being arrogant, selfish, egotistical, and above all,
a sore LOSER. He is doing whatever he can to gain markershare,
even if to put down a superior technology and market leader.
Obviously, the reason is that AAC is a much better format and the
others don't support it. AAC is part of the MPEG4 format. If the
others would fully support the same format, maybe things might be
different. REAL is on their way downhill fast and Rob Glaser knows
it and he is trying to save face with the shareholders and end losers
that use Real.
Posted by drblank1 (4 comments )
Reply Link Flag
BEWARE if you buy songs via iTunes/Apple
If you buy songs from itunes/apple,
you will be stuck with ipod forever,
as the songs cannot be played on other mp3 players!

If your next mp3 player is an from sony or nokia
that adopts open standard DRM,
all your itunes purchase will be down the drain!!

I wonder how many users know this.
Posted by rslc (93 comments )
Reply Link Flag
BEWARE if you buy songs via iTunes/Apple
Being stuck with a better audio format? Hmmmmm.... MP3 is
older, lesser quality audio format for compressed audio. For
those that didn't know this, RIC, you can put mp3's on the iPod,
just not with these other music player DRM crap.

Get over it. iPod is superior product and they have
approximately 80% marketshare of the player market. Notice I
didn't say "mp3" player market. BTW, you can now play high
quality videos with H.264 on the later generation iPods.

Don't be a sore end loser. :-)
Posted by drblank1 (4 comments )
Link Flag
We all know it
When I bought my iPod, I, like everyone I know that owns one
(and dozens of my friends own iPods), did some research.
I, and all my friends, preferred the SOUND QUALITY of Dolby
Labs AAC encoding over that of MS's proprietary CODEC.
I know that the Dell/Sony/Insert Name of All Other Failed
Competitor's Here sycophants can't believe this, but the elitist
attitudes that they hold when venting anti iPod garbage is
exactly that. Garbage.
Every iPod purchaser I know (including my poor, non technical
mother), read the boxes, read the reviews, went to stores,
listened, looked, touched and used an iPod (along with whatever
else that was on the shelf), then purchased the iPod.
Sorry to burst your bubble, but it's terribly arrogant of you to
assume that you're smarter than the people who disagree with
your conclusions.
Carry on,
Posted by GGGlen (493 comments )
Link Flag
Export as MP3's
Obviously you are on the outside banging to get it because your
claims are false. Here, I'll walk you through it....

Start iTunes and open your preferences. On Mac it is Safari-
&gt;Preferences and on Windows it is Edit-&gt;Preferences.

Select the Advanced tab.

Change the Import Using field to MP3 Encoder.

Close your preferences.

Now, right click any song in your library and select to Convert to
MP3.

You now have a version of that song that can be used on any
MP3 player.

Really, you should start making it a habit of reading the help
files before you enbarrass yourself in public.
Posted by sunergeos (111 comments )
Link Flag
you don't get it
Do you think 80% of the market cares? the iPod is the number one selling MP3 player. No other player has come close, I think something like 90% or more of the iPod owneres who buy another MP3 player, buy another iPod.

So why would they want to open up there system...think in terms of balancing business vs consumer. most people are thinking in one term or the other but not a balance
Posted by grossph (166 comments )
Link Flag
Not true
If you buy songs from iTunes/Apple, you will be stuck with "iTunes" forever. Even that isn't true because there are people who make MP3s from the protected AACs.
It is the subscription services that put your money down the drain. Once you stop, you loose the rights to your music. How is that better? If I don't want to purchase a single song on iTunes, I can still listen to everything that I've already paid for, either on any of my stereos (using Airport Express), my iPod(s), or my computer systems (Macs and PCs). How is this a restriction?
Posted by Awesomebase (99 comments )
Link Flag
No need to "beware" folks
The brilliant individual who posted "Beware if You buy songs via iTunes....", obviously isn't familiar enough with the iTunes software. If you prefer to have all of your purchased music in MP3 format, you're not stuck with the AAC format (MP4). Every song I have paid for &#38; downloaded from the iTunes Music Store, resides on my computer as MP3 because I prefer the flexibility of non-DRM files. Every song I have ripped from my personal CD collection via iTunes is also in MP3 format. AND everything I've seen Real Networks come up with, Realy sux. DUH...!
Posted by moonbeard (124 comments )
Link Flag
You have no clue. Apple DRM is transferable
It's called Hymn, or JHymn, or other names under Windows. It creates a completely DRM free copy, same audio quality of the file. Which means you no longer need to worry about the DRM. Which means you cna play the song anywhere, on any player.

And besides, when's the last tiem soemone else put out aplayer that's even close to Apple's Caliber? They haven't. So why worry?
Posted by (464 comments )
Link Flag
BEWARE WHAT?!! COMPLETELY FALSE!
"If you buy songs from itunes/apple, you will be stuck with ipod
forever, ..."

Where in the world did you come up with THAT crap! An audio
file, is an audio file. I can create an audio CD composed of any
of music in my iTunes library. ANY.

Given that simple, straight-forward fact. That means it can be
converted, and played back in ANY format I desire.

EITHER YOU ARE VERY STUPID, OR A CLASS OF DISHONEST
SCUM-BAG WHOM EVERY ONE HATES.
Posted by Thomas, David (1937 comments )
Link Flag
I can't believe there are still people spreading misinformation
This guy doesn't use iTunes AND doesn't know what he's talking about. Every song I've ever downloaded from Apple has been converted to an MP3. I share them with my wife (we consider it "family music") and she plays them on her SanDisk Cruzer MP3 player. "Look Ma - no hands!"
Posted by moonbeard (124 comments )
Link Flag
Incorrect
Your assertion is not correct. While the AAC files will not play on
MP3 players, Apple allows you to burn them to CD, which you
can then rip BACK to MP3, and play anywhere.

Some services/filetypes do or can have such restrictive DRM that
you cannot burn the songs to a CD. I can't burn my WMA files
then rip them back to AAC for my iPod, but I can burn my iTMS
AAC files to CD then rip them back to WMA or MP3. I wonder if
people ripping their OWN CDs to a format that cannot be burned
to CD know this.

Sounds to me like Apple is a much more open and reusable
choice. Crisis averted, village saved.
Posted by HWMBO (1 comment )
Link Flag
REAL Losing?
Real is losing, hence Rob Glaser is being a Real Loser. He should
probably step down, take his money and RUN.
Posted by drblank1 (4 comments )
Reply Link Flag
Glaser turning wrath on Apple....
... is about the same as the little kid who craps his pants to show
you how mad he is.
Posted by Earl Benser (4342 comments )
Reply Link Flag
LOL
The mental picture of Glaser crapping his pants to show Steve Jobs a thing or two is hilarious.
Posted by R. U. Sirius (745 comments )
Link Flag
 

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