The Microsoft-RealNetworks settlement and accompanying collaboration instantly captured attention and imagination as people across multiple industry segments try to evaluate the impact. The amount being written was beyond copious by yesterday afternoon and the words keep coming, Here’s a sampling:
BusinessWeek.com: “The new agreement is much more than a personal reunion, though. In fact, it’s a crucial deal for Rhapsody, which is now the leading online subscription music service, but faces tough competition from Napster and Yahoo. Though critically acclaimed and a market leader, Rhapsody has just 1 million subscribers. While Real recently cut a deal to put Rhapsody in front of Web-access giant Comcast’s customers, it still needs more visibility to develop into a business with long-term viability. This agreement gives Real just that.”
Forbes.com: “While good for Real, the deal is bad news for Real’s rival, Napster, which has lost $120 million since April 2003, and now loses a potential buyer in Microsoft. Instead, it will have to fend off a service backed by Microsoft’s marketing muscle and dollars. By the same token, the deal will also put more pressure on Yahoo to keep prices for its music subscription service, which are about half the cost of the competition’s, at rock-bottom levels.”
NYT: “Over the years, Microsoft has often been portrayed by its rivals and critics as a greedy giant, trying to bundle all kinds of products into Windows and stifling consumer choice. Yesterday, Mr. Gates and Mr. Glaser cast themselves as champions of choice in contrast with Apple, whose iPod players, iTunes software and iStore music store are tightly integrated. ‘We’re not one closed monolithic system, where you have to use their device, their software and their service,’ Mr. Glaser said.”
Seattle PI: Former RNWK VP Eric Liu’s description of Glaser: “He’s a jujitsu. He takes what looks like pressure that is being applied to him, and he is able to convert it into a situation where he’s increased the leverage.” The PI also reports that Glaser emailed Apple CEO Steve Jobs “seeking a similar relationship, which Jobs rebuffed.”
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