Real 'Slow' Networks: no DRM, finally

NEW YORK (Reuters) - Digital music seller Rhapsody is launching a $50 million marketing assault on Apple's iTunes, offering songs online and via partners including Yahoo Inc and Verizon Wireless, Rhapsody said on Monday.

The songs will be sold in MP3 format, which means users of the Rhapsody service will be able to play them on iPods.

Before now Rhapsody, jointly owned by Real Networks Inc and Viacom Inc's MTV Networks, had focused on a subscription service, allowing unlimited song streaming for $13 to $15 a month, rather than selling downloads.

I gave up on Real Networks over a year ago. The Digital Rights Management (DRM) restrictions and the oft repeating software glitches proved too much of a nuisance for what should have been an enjoyable experience. I want to listen to music, not struggle with it.

I dumped my stock as well.

Rhapsody is the latest player to challenge iTunes's 70 percent-plus market share of U.S. digital music sales.

Last month digital music service Napster Inc launched an MP3 store. Both Wal-Mart Stores Inc and Amazon.com Inc launched stores last year.

None of the new stores has made much of a dent on Apple's lead. Early this year iTunes became the biggest music retailer in the United States. It has sold more than 5 billion songs since it launched in 2003.

Its success has been due partly to a seamless interface between iTunes and the iPod and because it provides a good user experience [emphasis mine], said analyst David Card of Jupiter Research.<...>

Not to be sarcastic, but what would you expect?

"I think we'll see retailers begin to compete the way they usually compete with pricing, merchandising and promotions, rather than due to some arbitrary technology," Card said.

I don't have a degree in marketing. This simply sounds like common sense.


Rhapsody to challenge iTunes by embracing the iPod
By Yinka Adegoke
Mon Jun 30 2008
Reuters