On the conference call, Paul Bialek said that several additional announcements regarding GoldPass will be made when the fourth quarter earnings are reported. Likely that record label content with a couple strategic partners will be announced that day. If Real can get this consumer product to catch on they will have finally found the key to monetizing this technology in a big way. Once promoted and ramped up we'd be looking at $120 million recurring revenue at one million subscriber base. We need to watch the adoption rate of this closely. It's the most important development Real has come out with, imo. Rory
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RealNetworks Announces Record Growth For RealPlayer GoldPass Subscription Service
In Only Four Months, Over 125,000 Internet Consumers Embrace RealNetworks' Unmatched Combination of Exclusive Content, Software and Services
SEATTLE, December 20, 2000 — RealNetworks®, Inc. (Nasdaq: RNWK) today announced that more than 125,000 consumers have become paying subscribers to RealPlayer® GoldPass™ since its introduction just four months ago.
RealPlayer GoldPass, the first all-in-one media subscription service on the Internet, combines premium audio and video content, value-added software and games, and advanced services for consumers. The service was launched in August 2000, and delivers a new slate of offerings each month to its subscribers. In a December 11, 2000 report entitled Paid Content: Finding the Elusive Winning Formula, Jupiter Research characterizes GoldPass as an initiative with very strong long-term prospects. According to that report, the Wall Street Journal online subscription service took 4 years to surpass 500,000 subscribers. By comparison, GoldPass has built a paying subscriber base of over 125,000 users in only four months. RealNetworks believes that GoldPass is the fastest growing paid media subscription service in Internet history.
With more than 170 million unique registered users, the RealPlayer is one of the most popular applications on the Internet, leaving RealNetworks ideally positioned to deliver subscription services to the widest possible audience. The success to date of the $9.95/month GoldPass service demonstrates the company's ability to deliver audiences to its content partners – and to leverage these deep consumer relationships into new, recurring revenue streams.
"The incredibly rapid adoption of RealPlayer GoldPass opens up a new and extremely important business model for RealNetworks and our partners," said Richard Cohen, senior vice president, Consumer Division, RealNetworks, Inc. "We created an entire industry by connecting the widest audience of media consumers to the best content available on the Internet. With the GoldPass subscription service, we are now taking that record of success to the next level."
Thus far, GoldPass has featured exclusive content from dozens of leading partners, including ABCNEWS.com, the Spice Girls, The Smithsonian Institute, House of Blues, Cameron Crowe's Almost Famous, and RealTV, as well as best selling games such as Valve's Team Fortress and a special DSL service offer from Telocity.
About RealPlayer GoldPass Subscription Service
The RealPlayer GoldPass Subscription Service provides subscribers with all-in-one access to a variety of premium software and services, as well as exclusive programming and content. It is updated and enhanced monthly with a new mix of software, services, and premier content, including exclusive celebrity interviews, hot online games, sneak peeks at top new movies, concerts and music videos, cartoons, reality programming and other special events. Subscriptions for RealPlayer GoldPass are priced at $9.95/month, in addition to the purchase of RealPlayer Plus. Internet users may subscribe to GoldPass at real.com.
About RealNetworks
RealNetworks, Inc., based in Seattle, is the recognized leader in media delivery on the Internet. It develops and markets software products and services designed to enable users of personal computers and other consumer electronic devices to send and receive audio, video and other multimedia services using the Web. Consumers can access and experience audio/video programming and download RealNetworks consumer software on the Internet at real.com. RealNetworks' systems and corporate information is located on the Internet at realnetworks.com.
RealNetworks, RealPlayer and GoldPass are trademarks or registered trademarks of RealNetworks, Inc. All other companies or products listed herein are trademarks or registered trademarks of their respective owners. |
