RealNetworks Seeks a Musical Alliance With Apple

andychrist

andychrist

devil's plaything
RealNetworks made a direct appeal last week to Apple Computer, its Internet music rival, suggesting that the two companies form a common front against Microsoft in the digital music business.

The offer to create a "tactical alliance" was made on April 9 by Rob Glaser, chief executive of RealNetworks, the Seattle-based Internet music and video service, in an e-mail message to Steven P. Jobs, Apple's chairman.

But if an alliance with Apple could not be struck, Mr. Glaser strongly hinted in the e-mail message that he might be forced to form a partnership with Microsoft to pursue "very interesting opportunities" because support for Microsoft's media-playing software seems to be growing....

http://nytimes.com/2004/04/15/business/media/15real.html?hp
 
Yeah, Execs at Apple think he will decline. However, I think this would be another good opportunity to help spread the gospel of the Fairplay...
 
I think this would be an EXCELLENT idea real networks is a HUGE company with some IMO good codecs and I think the alliance would be very benifical to both partys and especially apple
 
DJ Rep said:
I think this would be an EXCELLENT idea real networks is a HUGE company with some IMO good codecs and I think the alliance would be very benifical to both partys and especially apple
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I totally agree. RealNetworks has a lot of media files over the net, plus it'd be another amazing opportunity for Apple to take up. Plus, if Apple don't, they'll not only be losing an opportunity but basically forcing another alliance with Microsoft, which isn't good. Put simply, in my opinion, if Apple decline, they're stupid. Nuff said.
 
If this is true(letter from Glaser) this would amount to a form of Blackmail or very least some very unethical strong arm tactics. This is almost like saying, hey Ace Hardware if you don't form an alliance with us, Lowes, then we will have to form a partnership with Home Depot which will lead to your demise. I don't think so. I think Glaser is one of the most sophmoric individuals out there, of course he has turned the company around the past few years, while Apple's quicktime has just been on what seems like cruise control from Reno to Little Rock.

I can see the alliance happening, but I don't think the letter can be 100% substantiated. I think the Sun/Microsoft things have turned a lot of people heads. This year could bring some big alliances. Companies see this year and next as a window of oppurtunity to attack MS, there may be some truth into their claims. Every 10 years you might be able to take some market share away from the Giants when they blink... ala, coke, ibm, ford this may be MS year to blink.
 
I think "demise" is taking things a bit far. The letter is really a business proposal, not a threat, in my view. Of course, has the letter been substantiated? ;(
 
I think that if the proposal was indeed made to Apple, It would have to be considered by Apple. Real Netorks is a solid company.

Apple might look at it in thwo ways; first it may be a good way to sell iPods. Second it is direct competition with iTMS. But since iTMS is not a real money maker for Apple, it will be interesting to see what the outcome is.
 
"'Real understands how incredibly powerful the Microsoft music initiative will be,' said Richard Doherty, a computer industry consultant and president of Envisioneering. 'I don't think that Jobs understands this. He doesn't realize how big the juggernaut is about to get.'" In his e-mail message to Mr. Jobs, Mr. Glazer said that he was reaching out to Mr. Jobs before making a move to switch camps.

I just love it when these so called journalists think they can run a multi-billion dollar company better. Yeh, Jobs is a complete idiot, I'm suprised he even understands the compexities of the peanut butter and jelly sandwich, said Doherty.
 
Natobasso said:
.... The letter is really a business proposal, not a threat, in my view. Of course, has the letter been substantiated? ;(
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Then I have a really good deal on the Brooklyn Bridge for you. I can get you a much better price than Donald Trump.

Prosposals outline the good things that can happen if you accept the offer. Extortion hints at the bad things that will happen if you don't accept the offer. I don't see anything that Real can do for Apple's effort in online music sales that Apple can't do alone. I don't see anything threat that Real can help Microsoft implement that Microsoft can't do by itself.

Clearly, Real is trying to extort Apple. Those of us who were not born yesterday know that no company comes out whole after entering a deal with Microsoft. Real's threat to enter a relationship with Microsoft is as close as you can get to threatening corporate suicide. Anyone with the sense God gave red brick knows enough to avoid dealing with suicidal people.
 
so, lets say Real gets the rights to fairplay... they add that to their media player and allow ipod users to download from reals music store. Ok, now tell me again how this benefits Apple. So, now real decides to drop it's price to 95 cents a song, unlikely, but possible so now 20% of itunes users use Real store. Loss for Apple. Real can now decode Fairplay and Apple still can't decode Real. Glaser is the "floating fat man" of Dune. What wouuld be cool is if Apple licenses fairplay v2 to the Indie labels and 2 other big record companies for free. I think Glaser is bluffing on this Microsoft thing, we'll see though. Many would sell the farm for a piece of software(ala IBM/Microsoft) I don't think this is the time. The only way I could see this being good is if Real promised to not use both wma/fairplay within it's store and allow apple to use it's code. apple and Microsoft are being used by Real who is nothing more than a grocery store. They should jointly destroy Real and get over and done with them for good.
 
Well, Glaser just blew it. He revealed his hand. He's clearly the desperate one. Jobs will either completely take him to town on this or completely blow him off. There will be no propping up of Real.

As for how it benefits Apple...if you buy into the notion that ITMS is a Trojan Horse for selling iPods, then clearly having another venue for the iPod is a good thing for Apple. I, for one, think the end goal is indeed to get ITMS to sustain profitability due to saturation of iPods. Once that trails off, Apple needs to profit from ITMS, and I believe that will be very doable, with or without Real.

I actually agree with mi5moav's point that Real needs to go. They are just confusing things even more.
 
Apple engineering is always top notch, however HP is going to take a huge market chunk out of iPod sales, unless HP aims at a different market segment (which it tends to do). ITMS does need to make money, but that has yet to be seen. We all know how much money the entertainment industry and its employees like to have and Apple getting rich off of their shoulders may be a hard task, but we shall see. The bottom line is that Apple needs to become an omnipresent standard in homes and business around the world, then the money will come. Volume, not high prices is the trick as the old Chinese proverb tells.
 
The thing I found odd about Real's proposal is that they will make iPod the player of choice for their music store. The thing is, how can they not? If they use FairPlay, iPod is the ONLY music player on the market that supports it. So this would mean two things, 1) Real will offer two versions of every song or 2) Real wants Apple to open up FairPlay so that other music player manufacturers can make players that also support FairPlay AAC files. Somehow I doubt Real is looking at option 1), it's simply not cost effective and a lot of work. But if Real is seeking option 2), it will be shot down instantly. iPod makes tremendous money for Apple, and Apple would not lot any competitor eat into its market share.

Unless Real has something truly interesting up its sleeve, I don't think they are bringing too much to the table. Granted, if Apple can get access to all of its codec's, so that Quicktime can play all Real files natively would be really cool (I'd love it, since I hate to have Real Player installed on my machine), but at what cost would Real relinquish them?

In any case, I hope Steve Jobs would at least listen to what Real has to offer. It should be a pretty interesting meeting. ;-)
 
Here's what I'm interested in. Say Job says, "Sorry, I'm taking my ball and going home."

So, Glaser goes over to Microsoft's court and says "Hey, can we play?"

What makes Glaser so sure that Microsoft will want Glaser in the game? Shoot, Microsoft may have no interest in Real, either.

Also, I find it funny how Glaser says he's not sure how the email was leaked. My guess, HE leaked it! Atleast now the public knows, and Apple *HAS* to respond. I bet Mail.app was like "JUNK MAIL" and moved it to Steve's junk folder. ^_^

Steve: "Ah Damn.. let me check my junk folder.. *Click's 'Steve's CRAP'*..., Hmm..... No, I'm not interested in re-financing my home. 3 inches.. really? Umm, I never knew a Sally from high school.. ah, here it is... 'can't we just get a long.. pleaseeee!!~111!!! - Glaser.. *SIGH*.... *CMD+D*"

As for the deal, *I* would be totally for it, IF Apple gets the rights to use Real's Codecs in QuickTime. That would be awesome. Course, I'm not Steve Jobs...
 
Just consider this article on c|not quoting Glaser:

But that's a half measure, according to Glaser, who recently quipped that Apple might go the way of the Soviet Union, unless it takes a more liberal stance toward licensing its software, specifically the FairPlay digital rights management (DRM) controls that prevent songs purchased through iTunes from being illegally copied.

Should Apple really jump into bed with a company whose CEO makes public statements as the one above (it's not a first timer either)? With someone who publicises deal negotiations just to add the extra pressure to the "offer" (well, at least that's how I see it)?

RealNetworks is not known to have the most open software either, so I'd say Glaser better STFU until that has changes.

This is not to say that Apple shouldn't be more open, but I think Jobs is right to decline such an offer.
 
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