April 26, 2005 12:35 PM PDT

RealNetworks offers free songs for new service

(continued from previous page)

song "rental" model first introduced by Napster.

That technology will make Rhapsody similar to the Napster To Go service, offering an unlimited amount of music that can be transferred to portable MP3 players, but that can only be listened to as long as a customer continues to pay subscription fees.

This model has been dismissed by Apple CEO Steve Jobs, whose company offers only the ability to buy permanent downloads for $1 each. Consumers want to own their music, not rent it, he has said.

Some analysts have predicted, however, that subscription services are gaining in popularity and may ultimately outstrip revenue for per-song download stores.

According to RealNetworks, the new Rhapsody will come in three tiers--the free service, offering access to just 25 songs a month, a version similar to the original allowing unlimited listening for $9.99 per month, and the new portable version, which is $14.99 per month.

Some analysts said it could be difficult to explain those separate versions and delineate a clear upgrade path for consumers. The free service is a good first step, but it faces increasing competition from other services that offer more, one analyst said.

"I understand that from a marketing perspective it is important to help get people into it," said GartnerG2 analyst Mike McGuire. "But I think is going to be a challenge. They aren't facing just the challenge of free peer-to-peer, but also legitimate free online radio stations."

Unlike the older Rhapsody service, the new version also will allow people to import other songs from a hard drive into the jukebox software and play them alongside the subscription-based songs.

That means the company now views Rhapsody, rather than its broader RealPlayer suite, as its primary music software. The move is part of a broader strategy to move customers interested in a particular area--primarily music or games--to applications focused on that area, the company said.

"What we've learned is that solutions with a specific purpose allow you to create the best solution for customers," said RealNetworks Chief Strategy Officer Richard Wolpert. "When someone comes and knows they're into music, to say to them, 'This is the music thing' is an easier proposition than saying, 'Here's something that's for everything.'"

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9 comments

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Been saying it all along.
I've been saying it for more than a year... DRM is the key to digital media success. After Real attackes Microsoft in multiple venues for a plethora of self-inflicted shortcomings, they are now PAYING Microsoft for DRM technology. Just a sec...

<HAHAHAHA! HAHAAAA! HAAA! HAAAHAHAHA!>>

ahh... that felt good. Real always tried to claim that they had superior technology, and that their failure to grow was based upon unfair competition. Now they must license technology from their competitors just to stay in business. What a hoot! (although I still won't touch their products)
Posted by David Arbogast (1712 comments )
Reply Link Flag
You're a geek!
nm
Posted by ivand67 (40 comments )
Link Flag
Hah!
I always get a kick out of your messages. Agree or disagree, they are always interesting.
Posted by Sboston (498 comments )
Link Flag
As someone said elsewhere....
.... I didn't know that Real was still around. Now that I know they
are, I still don't care. At best, Real comes in sixth in a three way
race.
Posted by Earl Benser (4342 comments )
Reply Link Flag
Anyone can say I want to compete with iTunes
But successful or not is another issue :) Anyway I don't see any reason to download the huge, buggy, and ad-rich Real Player. iTunes is ad-free, and it is a free download. The choice is clear :)
Posted by 201293546946733175101343322673 (722 comments )
Reply Link Flag
RealNetworks Rhapsody Software Is No Good
Two hours later and this [edited] software still does not work. They should be paying ME to use this so called software. To wit:

1) Downloaded and ran Setup
2) Windows says software is unsigned, cannot verify publisher. Do I really want to install?
3) At the 70% mark install stops, says DRM module failed.
4) Try reinstall to no avail
5) Thinking there may be a proxy issue (even though I told it I have a proxy), dial up my ISP to get a direct connection and start install again
6) Install completes to 100%, but dialog box does not close
7) Look at traffic stats from dialer. Byte count is increasing. 30 minutes and 8 megs later, install boxes closes. Install says I must now reboot.
8) Launch Rhapsody. Program briefly flashes startup screen then terminates with "Initialization failed."
9) Go to Rhapsody support site. Hints like make sure Flash 7 is installed, make sure Windows Mediaplayer 10 is installed, make sure listen.com is in Internet Explorer trusted zone, etc.
10) Fully compliant, tried everything, and software still terminates with initialization error. No debug info at all in Event Log or anywhere else.

Who wrote this software? Bulgarians? Why does it need every other 3rd party media software, including competitors, to run? Why can't Realplayer just access Listen.com directly? Why do I need another 28 megs of redundant software to have to deal with? Why can't I use Firefox, I hate IE? Why do I need Flash? Why is there no useful debugging info?

To RealNetworks: Guys, you are dead meat. Give it up, cash in your stock, and retire to Boca.

Keith
www.techcando.com
Posted by Stating (870 comments )
Reply Link Flag
Good Point....
Also check your site the links on the home page (Bottom to services.htm) point to the wrong directory... HTH's get you more $$$$... I would only ask for my 0%! lol

Damn I hate being a nosey little beotch!

80)
Posted by (14 comments )
Link Flag
Real = Spyware
Once a company decides to use spyware to further its goals, you can never trust anything from that company again. With obscene DRM as a new tool in getting information from its users, Real looks to be on a new tear.
Posted by (1 comment )
Reply Link Flag
I trust MSFT more than Real
Real sucks! I also agree about the spywware message. They had their oppurtunity but failed. I'll never have Real on my system again.
Posted by bobby_brady (753 comments )
Reply Link Flag
 

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