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To: Dealer who wrote (42529)	9/24/2001 5:42:35 PM
From: Dealer	Read Replies (1) \| Respond to of 65232

RNWK--RealNetworks Merges Programs Into RealOne By Sue Zeidler LOS ANGELES (Reuters) - Internet media company RealNetworks Inc. (Nasdaq:RNWK - news) on Monday unveiled a new service melding its two popular consumer programs, RealPlayer and RealJukebox, into a single, digital media destination. The combination has been long expected and marks the latest step by RealNetworks toward the nuts-and-bolts of Web content delivery as well as its continued effort to compete with arch-rival Microsoft Corp.'s (Nasdaq:MSFT - news) Windows Media Player. The new product, called RealOne, fuses RealPlayer's audio and video streaming software with RealJukebox's software, which lets users record, organize and play music on PCs. ``I think it was an inevitable step for them to take. The signs were all pointing in this direction for them to go for an all-in-one player and to derive revenue streams from a subscription service for content rather than a one-time shot for a software upgrade,'' said Bryan Ma, senior analyst with Internet research firm, IDC. RealNetworks saw sales of its core systems products and advertising revenue fall even as service revenues rose in the most recent quarter. ``This move fits with a model they're moving toward, which is subscription,'' said CS First Boston analyst Heath Terry. Dave Richards, vice president of consumer systems for RealNetworks, said the new player will first be launched on a free trial basis on Monday. Within 60 days, a version with advanced features and premium programming will be available for $9.95 a month, with a potentially higher start-up fee. TIE-UP WITH MUSICNET Richards said the company expects to build on the back of its success with its GoldPass subscription service, which was launched in August 2000 and has over 300,000 subscribers. GoldPass subscribers will get the new service at a special rate. Richards also said the content from MusicNet, a much-anticipated online music venture between RealNetworks, AOL Time Warner Inc.'s (NYSE:AOL - news) Warner Music, EMI Group Plc (news - web sites) (EMI.L) and Bertelsmann AG (news - web sites)'s (BTGGga.D) BMG, and independent recording giant Zomba, will be provided on RealOne for an added fee. Richards said the pricing will be structured in such a way as to make it cheaper for users to bundle them together than to buy MusicNet separately. MusicNet is expected to cost around $10-$20 a month, although some options may be lower, and should be available to consumers within 60 days, industry sources said. AOL and Napster (news - web sites), which is reinventing itself as a secure, subscription service, will also distribute MusicNet. ``We've been waiting for RealNetworks to merge these software products. It's a natural combination. The real news is they've launched an offensive against Miscrosoft's windows media,'' said P.J. McNealy, analyst with GartnerG2. Recent data from Jupiter Media Metrix, which tracks Internet trends, shows Windows Media home users at about 24.7 million versus 24.4 million for the RealPlayer. A RealNetworks spokeswoman, however, said the Jupiter Media Metrix numbers did not take into account all the usage of RealPlayer by AOL Time Warner Inc.'s (AOL.N) AOL users. ``With their broad user base this is not an inconsequential number,'' said a spokeswoman, noting that by taking these numbers into account, the number of RealPlayer users hit 35.5 million in July. A Media Metrix spokesman said the research firm monitors all the usage, including AOL, but when reporting its monthly statistics on the players, it reports the stand-alone usage only. ``In addition, we do also report the number of users within the AOL proprietary service since we have the ability to measure within the AOL service,'' the spokesman said. ``Many users have both applications (Windows and Real) on the same PC,'' Ma said. ``It's not a case of having only one.'' The move should not immediately affect Real's bottom line as its stock hovers at its lowest level in 3-1/2 years amid continued weakness in media shares, analysts said. Another challenge is the still fragmented nature of online music services. Music from recording giants Vivendi Universal's (EAUG.PA) Universal Music and Sony Music (6758.T) will be offered on a service called Pressplay via Microsoft's MSN and Yahoo Inc. (Nasdaq:YHOO - news). A Pressplay spokesman on Friday said the service was on track to launch this fall, although the company appears to have missed an earlier September launch date set by Vivendi Executive Vice President Edgar Bronfman Jr. in July.