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March 23, 2004 10:47 AM PST

Real's Glaser exhorts Apple to open iPod

  • 38 comments
SCOTTSDALE, Ariz.--RealNetworks CEO Rob Glaser has a message for Apple Computer chief Steve Jobs: Open iPod or shrivel.

Glaser, the feisty founder of the Internet entertainment network, said during a panel discussion Tuesday at PC Forum here that Apple is creating problems for itself by using a file format that forces consumers to buy music from Apple's own iTunes site. (CNET Networks, publisher of News.com, last week acquired EDventures, which sponsors PC Forum.)

Because Apple's iPod music player does not support other proprietary music formats and does not license its own format to rivals, Real's Rhapsody and other song sites are blocked from easily reaching iPod users.

"Apple's (market) share will go down if they continue to do this. The only way to presently put songs on an iPod is to (buy) them from iTunes," Glaser said, referring to downloads purchased from online music stores. In addition to iTunes songs, the iPod can play files encoded in the MP3 format, including tracks ripped from CDs.

Hewlett-Packard, which has partnered with Apple on digital music, is in a position to persuade the company to change its practice, he said.

"There is a good opportunity to say to Steve, 'You've done a good job of promoting this thing, but now one of two bad things will happen,'" Glaser said. "One, Apple's market share will go down to its historical single-digit levels, or two, it will slow down the development of this market."

Glaser predicted that customers will say, "I bought an iPod and can only shop at one store. What is this? The Soviet Union?"

Shane Robison, chief technology officer of HP, shared the panel with Glaser and said diplomatically that discussions on many issues are always ongoing.

Apple could not be reached for comment.

Glaser also applauded actions taken by European regulators to limit Microsoft's ability to bundle technology into Windows. Real has been directly affected by the practice, because it makes a competing media player.

"I think it is a step in the right direction. It is not transcendent," he said. "The specific solutions have not been announced yet, but the outcome suggests that the European regulators did the right thing for the right reasons."

Glaser further said that the European Commission's ruling is not likely to exert massive political pressures because most of the companies directly affected by the decision--Sun Microsystems, RealNetworks and Apple, among others--are based in the United States. The commission, however, has said it entered the investigation on behalf of European citizens.

Microsoft, meanwhile, struck a deal with Major League Baseball to offer live audio and video on its networks. MLB used to have a partnership with RealNetworks.

Add a Comment (Log in or register) Showing 1 of 2 pages (38 Comments)
Why should they?
by March 23, 2004 11:37 AM PST
So, is Real just crying since they seem to be at the tail end of the
train following Apple's lead?

iPod owners have more choices than just buying music from
iTunes Music Store. You ever hear of MP3s? You can play those
on the iPod too, which can be encoded from CDs you own. Why
do iPod owners need other choices when iTunes music store
currently has the biggest selection of music?

iPod + iTunes is the slickest and easiest solution for digital
music, there's no need to change that!
Reply to this comment
Somebody's lyin'!
by March 23, 2004 12:12 PM PST
I don't have an iPod (yet), but this is a quote directly from from Apple's web site (http://www.apple.com/ipod/):

"iPod supports the most popular audio formats ? including MP3 (up to 320 kbps), MP3 Variable Bit Rate (VBR) and WAV."

Also, the Apple's iPod tech specs web page (http://www.apple.com/ipod/specs.html) says the iPod supports the following file types:

"AAC (16 to 320 Kbps), MP3 (32 to 320 Kbps), MP3 VBR, Audible, AIFF and WAV"

Could somebody be involved in a "disinformation" campaign?
Reply to this comment
they call it FUD
by March 23, 2004 11:20 PM PST
"fear uncertainty and doubt"

It spreads like wildfire.
most popular audio
by Ipod Apple May 17, 2007 3:23 PM PDT
http://www.analogstereo.com/vacuum/miele_200_vacuum_chart.htm
why they won't
by iKenny March 23, 2004 12:53 PM PST
They won't do it...yet. It would be smart for Apple to allow other
MP3 players access to the iTunes Store but they can't do this. If
they did, the other companies would instantly figure out the AAC
Fairplay encoding and start selling iPod-compatible songs of
their own, perhaps cheaper, ending Apple's monopoly on iPod
download stores.

As long as iPod is #1, Apple really has no reason to allow others
access to the iPod. Unless customers stop buying iPods because
they don't want to use iTunes (which hasn't happened), there's
no reason for them to make it open. If I were Apple, I'd be
watching this very carefully. As soon as large numbers of
customers were being lost because of the forced usage of
iTunes, they would have to open iPod to other store and open
their store to other players, while keeping the iPod-iTunes
syncing superior.
Reply to this comment
Is the AAC + FairPlay solution truly proprietary?
by March 23, 2004 1:13 PM PST
AAC is an open standard, and FairPlay is separate from Apple -
right? For the life of me, I can't find their website again, but the
FairPlay site definitely looked like it's own entity. If I'm right,
how on earth can this be a less attractive solution than those
offered by MS or Real? What's keeping others from using these
technologies?
Reply to this comment
Aha - here's the answer (?)
by March 23, 2004 1:21 PM PST
http://64.244.235.240/explained_contentprovider.asp

FairPlay does not appear to be Apple technology - Forgive them
for not jumping into bed with Microsoft or Real! This seems like
a much better solution
not to be confused with Veridisc FairPlay
by TechStuff August 20, 2004 11:39 AM PDT
Apple's FairPlay DRM is NOT the same as the (apparently
defunct) Veridisc DRM solution of the same name.
http://64.244.235.240/info_about.asp
Here's how I see it
by March 23, 2004 1:31 PM PST
FairPlay is not owned by Apple:
http://64.244.235.240/explained_contentprovider.asp

In typical Apple fashion, they are ahead of the curve, and
discovered this technology. They anticipate its ultimate success
(802.11 anyone?) and have signed an agreement with Veridisc
(creators / owners) of FairPlay to use their DRM. Soon, once the
kinks are all worked out on Veridisc's end, this will become a
widely available form of DRM, and much more appealing than
that of MS or Real. This will all make sense shortly - it's
nonsense to think that Apple has anything to lose by
competitors offering the AAC + FairPlay solution - it can only
benefit them. Apple is embracing standards all over the place,
they wouldn't make the kind of lock-in mistakes they have in the
past.
Reply to this comment
What Glaser knows...
by jfbiii March 23, 2004 1:38 PM PST
...is that no other service has a shot in hell at
outselling Apple's iTMS unless Apple allows services like
Glaser's to profit from the iPod.

Glaser's service doesn't even work on a Mac. I predict that
Rhapsody will die unless they open their service to more
platforms.

The concerted disinformation campaign being run by iTMS
competitors and added and abetted by media outlets like
CNET is the only hope for people who cannot produce a
best-in-breed application/hardware combo. Glaser should
worry about competing in the marketplace instead of trying
to manipulate it.
Reply to this comment
Rhapsody will die
by Ipod Apple May 17, 2007 3:22 PM PDT
http://www.analogstereo.com/vacuum/miele.htm
"closed ipod"?
by 198775425444042216790779840523 March 23, 2004 1:51 PM PST
The iPod plays acc, mp3, aiff, and wav files. The only thing it
does not play is wma vorbis orgg, and real files. There is a FREE
program that will make it so you CAN play these however.
ACC, iTunes and the iPod ARE the INDUSTRY STANDARD. Why
don't people understand this. WMA is as, or more proprietary as
ACC...actually ACC was developed be companies like Sony and
Motorola....WMA is windows only...hummm
Never happen.
Reply to this comment
lol...
by March 23, 2004 2:41 PM PST
maybe if glasier spent his time making Real player streaming media a better format instead of complaining about apples blantant superiority he could make a format that would be as widely adapted as mp3 or aac is becoming.. no one is forced to buy from the itunes music store.. i ahvent bought one song there and this is my second ipod i've owned. i rip all the cds i own and put them on my ipod. i would be upset if apple was in bed with real or microsoft, they both make the worst streaming formats on the planet... and sadly they have no idea.
Reply to this comment
Real's Glaser to iPod
by hdimalanta March 23, 2004 2:57 PM PST
Real's Glaser needs to get a life.
Apple does not have to. Real has to...

To partner with Apple just like Hewlett-Packard.
Smart move on their part to change and get off
the band wagon and smell the roses. iPod is the
future in the present.
Reply to this comment
Its called an MP3, idiot...
by March 23, 2004 3:23 PM PST
Hey, Earth to GLASER! Why don't YOU open YOUR stupid format and convert .rm's into MP3s and MPEGs. Then your "historic, single digit market penetration" might someday expand.
Reply to this comment
market penetration
by Ipod Apple May 17, 2007 3:22 PM PDT
http://www.analogstereo.com/xm_samsung_helix.htm
Related Quotes: REAL
by March 23, 2004 3:36 PM PST
Doh!, more poor editing at C|Net. REAL is not RealNetworks. Rather RNWK is the right ticker. But I guess the price is close enough, lol...
Reply to this comment
.RM is also proprietary..and have you ever heard of MP3?
by March 23, 2004 3:40 PM PST
Oh come on. I dunno why this guy even made the comments. If he wants to sell to iPod users, just use MP3 format. Apple has no reason to release the AAC format for use by other companies. There's no need. Apple's marketshare won't change over holding in the AAC format. ANd beside - Correct me if i'm wrong, but I don't see RealNetwork's own, proprietary .RM format playable with anything else but the RealPlayer. Hippocrite.
Reply to this comment
Once Again,
by March 23, 2004 4:44 PM PST
AAC is not proprietary, and neither, I believe, is FairPlay. - Well,
okay, they may be proprietary, but they are licensable (is that a
word?) from:

AAC:
http://www.vialicensing.com/products/mpeg4aac/
standard.html

and

FairPlay (Veridisc not Apple)
http://64.244.235.240/explained_contentprovider.asp
Mac is unPC ... and iPod is "unReal"
by jstillmank March 23, 2004 5:20 PM PST
And thank God that Steve and Co. have had the good sense to do what they are doing: provide the best hardware, best NONproprietary formats, best download store .. the best of everything!

Remember the first iMac commercials: "about as unPC as you can get," wasn't it? Well the iPod is about as unReal as you can get, and we love it.

Glaser, everybody recognizes your sour grapes and "me too" attitude. Fix your own product and let Apple worry about theirs.
Reply to this comment
Real are hypocrits
by March 23, 2004 5:50 PM PST
On four counts...

1) They announced they were using AAC themselves for their
future services but with their own proprietary, Helix DRM added.
Do you expect Apple to support your DRM also?

2) Apple's DRM isn't Apple's at all - Fairplay is from VeriDisc.
Perhaps Real should talk to VeriDisc about FairPlay DRM instead
of using Helix or blaming Apple.

3) When you go to Real's Rhapsody online music store using a
Mac it prominently says 'RealRhapsody music service is not
available for Macintosh users.'. Perhaps Real should support Mac
users before asking Apple to support them.

4) The iPod doesn't use DRM. The DRM is built into iTunes so
that you can only copy DRMd files to you iPod provided it's from
an authorised computer. Real should do their homework before
********.
Reply to this comment
not to mention...
by March 23, 2004 5:55 PM PST
last i checked you cant even encode to rm or any real format in mac os X .. the only solution we ever had on os 9 was cleaner, and i dont think it encodes to any real format on os x.. not to say i WANT to encode to that awful awful format.. im surprised real has even made it this far with such shoddy products.... rm and wmv should duke it out for worst streaming format ever.. i wonder who would win?
Give me a break....
by March 23, 2004 6:38 PM PST
The apple music store has sold 50 million songs. How can
Real say they're going to lose market share?? If someone is
really butt-hurt about having to buy online music only from
itunes music store then there's dozens of other poorly
designed media players with which they can buy music
from other poorly designed online music stores with their
poorly designed Windows-based PCs.
Reply to this comment
Do you really think that people are that stupid?
by March 23, 2004 9:27 PM PST
The one thing that really bothers me is that the other music sites criticize itunes for AAC, but they don't realize all any music fan from any site(Napster,Walmart,itunes and etc.) can buy a song and burn it to cd or cd/rw and convert it to mp3. I like itunes as well as Napster. Some songs that I don't get from itunes I get from Napster and burn them to CD and then transfer them to mp3. CD-R's are so cheap now you can easily get what you want for any mp3 player especially the ipod. AAC makes the ipod and itunes unique the rest are cookie cutter copycats
Reply to this comment
maybe not stupid
by March 23, 2004 11:18 PM PST
but there are a lot of ignorant people that just do not know any
better. I know people that would believe me if I told them their
computer had a temporal flux capacitor in it with an oscillation
overthruster running at 888GHz.
View reply
Well...
by Terry Murphy March 23, 2004 10:19 PM PST
I like to think that Real was an early pioneer on the net, so it's
frankly sad to see them resort to this kind of completely inane
dribble about Apple, the iPod and, oh my God, the Soviet Union.

I like to be the first to announce to Real that they do have a
chance on the online music market. Today. Right now. Here's
how you do it: Instead of waisting eveyone's time complaining
about Apple and the iPod, compete with them, Offer the world a
product that blows the iTunes and the iPod solution away.

Problem is that will never happen. You know it and I know it,
because everyone in your business is too lazy, too stupid, and
lacks any sort of creative inspiration whatsoever to even begin to
take on Apple at that level. And that's precisely what separates
Apple from it's competitors. That's precisely why Apple has
enjoyed 50 million (and counting) downloaded, paid for songs.
That's precisely why Apple's dominant share of legal downloads
will remain just that. Dominant, There is simply no reason for
anyone to look at any solution other that iPod and iTunes, and I
don't see one coming for the foreseeable future. Certainly not
from Real, after reading this article.

By the way AAC comes from Dolby labs, not Apple. Apple uses it
under license. So could anyone else. Even Microsoft. Along with
fair play, AAC sounds great, and you own the songs you buy.
Along with iTunes and iPod, what does anyone else offer that
invites even a cursory look?

Maybe Real should start selling CD's online. How about that?
Reply to this comment
Typical F.U.D.
by March 23, 2004 11:11 PM PST
Of course this FUD will spread despite how erroneous it may be.
Even if you can buy CDs and convert them to MP3s or purchase
MP3s elsewhere, there will still be ignorant people that only hear
the FUD second hand from people who regurgitate it without
question. Some people do not even realize there are alternative
operating systems and only hear about windoze their whole life.
Reply to this comment
If They Want The iPod so bad...
by March 23, 2004 11:25 PM PST
If they want to sell music that plays on the iPod so bad then why don't they just release them as unprotected aac or mp3 files then? Obviously we know the answer to that one but still, as long as a road is there you can't really complain about having to off road it. It's so funny for him to say that though, they're essentially going to the people who are the market leaders by a huge margin and telling them "your doing it all wrong!". Anyone else think that's a little odd? Besides why would you want to use any other music store other than iTms? The only reason I can see is if they don't have the song you want which is becoming less and less likely everyday...
Reply to this comment
Really not knowing what he's talking about!
by theusm March 24, 2004 2:16 AM PST
Isn't real the worst format ever. Can not be converted to
anything, is only played on real players ... Apple's AAC and MP3
is widely supported on any platform. Why doesn't he just tell us
that he is pissed off and jealous to see the well designed Apple
product taking the market on the fly. Unfortunately most PC
users can not distiguish between trash and well designed stuff ...
Reply to this comment
Bravo!
by March 24, 2004 8:14 PM PST
I couldn't have said it any better. Bravo!
Showing 1 of 2 pages (38 Comments)
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