Real's scramble points to isolation

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Real is on its way out of the player business.

They have two things going for them: streaming downloads, where they compete with Microsoft, and content sales. As the story noted, Microsoft has DRM that's popular with the demented content providers, so Real is in danger of being squeezed out.

Their [insult] software is a weakness, but they would drop it tomorrow if they could work out a way to give the company a firm basis on which to make money in the future. Real has always been in a scramble to reinvent itself fast enough to be profitable.

What they're trying to do now is to find a partner whose potential business they can share. But who needs them? Apple is a hardware maker obtaining content at a loss, or at best a breakeven. Microsoft can do what they can in software, obviously, and the baseball contract shows they don't mind buying content themselves.

Maybe they can be Microsoft's content seller licensee, using Microsoft technology and selling their own products and those turned over to them by Microsoft. In fact, that's probably their best chance. Microsoft has found out they should emphasize software over its uses, and if partnering with Real seems like an easier way to make a profit, they might be willing to go with it.

The EU and antitrust cases were a strategic move to get money and maybe a way to slow down Microsoft's encroachment. It may also be leverage in getting the best deal they can with Microsoft. If they have to back away from courts and governments after negotiations, they'd probably do it instantly. All they want is to keep on existing.

Posted by: Anton Philidor   Posted on: 04/15/04 You are currently: a Guest | Members login | Terms of Use

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