Subscribe

RealNetworks ends download 49c promo

By Reuters
Seattle, 10 Sept 2004
RealNetworks is ending its 49c-per-song music download service but will keep the promotional prices in place for top 10 songs, the Internet media and software company said yesterday.

The Seattle-based company, which provides software and services for sending and receiving audio and visual content over the Web, said it had sold three million songs in the three weeks since launching the promotion on 17 August.

RealNetworks also reiterated that the cost of the programme will widen its third-quarter loss by 1c per share, but did not break out the likely costs of the campaign.

The promotional campaign was launched after RealNetworks introduced technology called Harmony in July to make songs purchased from Real`s music store playable on Apple Computer`s iPod music players.

Harmony, which translates digital rights management software used with songs sold by Real to make them compatible with the iPod`s standard, rankled Apple, which said Real had "adopted the tactics and ethics of a hacker".

Apple said yesterday that the jump in Real`s song downloads had not dented its market share.

"iTunes is currently selling around four million songs per week and over 16 million songs per month," said Apple spokesperson Natalie Kerris. "During the last three weeks we did not see any drop in our market share, and our sales grew each week."

Microsoft joined the music download service last week with the debut of MSN Music and a new Windows Media Player.

Apple, Microsoft and RealNetworks will now all offer the bulk of their songs at 99c each.

RealNetworks VP Dan Sheeran said the promotion had drawn a significant number of customers to the company`s music download service, but declined to say how many songs have been downloaded since the service was introduced earlier this year. Apple says it has sold 125 million songs from its music store.

"The discount and the Harmony promotion has enabled us to take a leading position in the download segment of the market," Sheeran said.

The top 10 list of songs that will remain at a discount of 49c per song will be compiled with Rolling Stone magazine, RealNetworks said.

Shares of RealNetworks were down 16c, or 3.36%, at $4.60 at the close on Nasdaq, after earlier hitting a 17-month-low of $4.39.

Share