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December 5, 2005 6:10 PM PST

Glaser turns wrath on Apple, Jobs

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SAN FRANCISCO--Rob Glaser has made his peace with Microsoft's Bill Gates. Now, the RealNetworks chief executive is turning up the rhetoric against another technology icon: Apple Computer CEO Steve Jobs.

At the Digital Living Conference here on Monday, Glaser told a packed hotel ballroom that Jobs & Co.'s refusal to make the iPod compatible with music services other than Apple's iTunes was "pigheadedness." Glaser also said that Apple's unwillingness to cooperate with other online music vendors promotes piracy of copyrighted materials and will eventually draw the wrath of consumers.

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Video: RealNetworks' CEO Rob Glaser
"Apple's pigheadedness."

These are heady times for Glaser and his Internet multimedia company, which announced in October that it had reached a favorable settlement with Microsoft on the $1 billion lawsuit RealNetworks filed in 2003.

Under the deal, Microsoft agreed to pay $460 million in cash to settle the antitrust claims and will also pay $301 million to support RealNetworks' music and game efforts. In addition Microsoft will promote RealNetworks' Rhapsody subscription music service on its MSN Web business.

Perhaps Jobs unknowingly helped RealNetworks and Microsoft find common ground. In 2004, Glaser appealed to Jobs to make the popular iPod compatible with other music services. Microsoft has long sought to strike partnerships in the digital-music arena to help it challenge Apple's enormous lead in the sector.

Jobs responded by telling his shareholders that a deal with RealNetworks simply was "not worth it." Glaser didn't let that stop him. In July 2004, RealNetworks released a version of its music download service compatible with Apple's iPod--without the permission of Jobs & Co. Apple has called it "hacker tactics" but hasn't filed a lawsuit.

Following Glaser's presentation he was asked whether Apple's unwillingness to allow others access to the iPod, the hot-selling digital music player, was hurting RealNetworks.

"We think Apple Computer, and Steve personally, are making a mistake by making the software proprietary," Glaser said, noting that RealNetworks would continue catering to users of Macintosh computers. "There's no reason we should penalize Apple customers for Steve's pigheadeness."

In an interview following his presentation, Glaser called for the music industry to pressure Jobs into opening up the iPod to other online music vendors.

"Steve makes for a good pinata because he's taken a position against interoperability," Glaser said. These people "should be pressuring him to change because they have leverage over him. Apple being on its own in term of interoperability makes piracy more compelling for consumers. Because, hey, if I take all my MP3s from this illegal site or that illegal site, they'll work on the iPod or anything else. Whereas if I buy them legitimately, they'll only work at one place."

Glaser said that consumers could blame Apple if they can't hook up their music with their other digital content should such convergence become popular.

Glaser was at the conference to debut a revamped Rhapsody digital music service, which will let people search and listen to its catalog of songs from a Web page, instead of requiring them to download software. RealNetworks is hoping that an overhauled Rhapsody site will help it stand apart from competitors, which often require users to download software before they begin listening to music.

In an effort to draw attention to the site and compete with iTunes, RealNetworks is allowing visitors to stream 25 songs for free.

"I don't think anyone offers anything freer than 25 (songs)," Glaser told the audience following his speech. "We're the cost and price leader."

But can RealNetworks make money with such a strategy?

"We already know from having done six months of work that the economics of getting consumers to use free services are good," Glaser said.

Among the strategies available, RealNetworks can sell ads to the site or steer customers to premium services that company could charge for.

"Google had a ubiquitous strategy before a monetary strategy and last I heard it worked out for them," Glaser said.

See more CNET content tagged:
Rob Glaser, RealNetworks Inc., Steve Jobs, Apple Computer, RealNetworks Rhapsody

Add a Comment (Log in or register) 152 comments
What a baby
by Jeff Putz December 5, 2005 6:19 PM PST
Seriously... what a baby. Imagine Apple wanting to build a product that encourages the purchase of their own hardware, which happens to be pulling the big dollars and keeping stock price high. If Glaser could do the same thing he would, or face the wrath of his shareholders.
Reply to this comment
What a baby
by Intelrules December 5, 2005 8:17 PM PST
I agree with you. He got his butt crushed by softy & thinks now he is the supreme ruler in music player business!!!
well
by chuchucuhi December 6, 2005 8:09 AM PST
if we remember history the last time Jobs made a system with their own software and specific hardware...oh yeah the Mac which led to Jobs leaving Apple. What goes up comes on down too.
View reply
Déjà Vu?
by macnut222 December 5, 2005 6:38 PM PST
Didn't Glaser [practically] say the same thing a few months ago? Get
over it already. If Apple is going to 'open up' their format, they'll do
it on their time table, not because of Glaser's whining.
Reply to this comment
Ease of Use
by davidlawless December 5, 2005 6:38 PM PST
I don't have a big problem with Apple's iPod policy. It keeps things
simple, iTunes is still the easiest jukebox software to use, their
prices are competitive and I know who to contact if their is a
problem. No finger pointing, just contact Apple.

Mr. Glaser, if Apple were to open the iPod, who's software would we
have to use to load our iPods with Real's music? Real's? Like I need
or want another program to learn... Get a life or better yet, come
up with a product people actually want to buy!
Reply to this comment
To hell with them all
by unknown unknown December 5, 2005 7:01 PM PST
Have no intention of paying for any of this lower quality DRM encumbered over price crap Apple, Real, and Napster are selling.

Apparently ear bud make it a lot easier to damage ones hearing. All these people have damaged their ears and are content to listen mediocre audio quality because they can no longer tell the difference.
Reply to this comment
Actually...
by nightveil December 5, 2005 7:42 PM PST
Most people can't tell a great difference between music from a CD
and music from an MP3 encoded at 128Kbps. It's one of the things
that makes the MP3 format work. I can encode my entire CD
collection, put it on a player I can carry with me and listen to music
that sounds almost exactly the same.

Earbuds don't damage the ear. Listening at high volume for
extended periods of time damages the ear.
View all 2 replies
AAC encoded
by Awesomebase December 6, 2005 8:57 AM PST
I don't know if you noticed or not, but when you purchase music from Apple, it is in AAC format. AAC is far superior to MP3. AAC at 128kbps is indistinguishable from the actual CD recording. I've ripped my CDs in AAC format because it sounds much better than MP3. Besides, if you pay for CDs, why not pay for AACs? Try it out and then comment on your experience.
View all 2 replies
hearing
by xpblue December 5, 2005 7:12 PM PST
your just jealous of us listers of the itunes/ipod!.....huh!.....eat my
ipod dust!
Reply to this comment
RE
by unknown unknown December 5, 2005 7:52 PM PST
I assume you ment to reply to me. No I am not jealous. If I wanted an Ipod I could very easily go to Apple's website and buy one.
He's just envious.
by Scott Selby December 6, 2005 7:44 AM PST
I have refered non-iPod owners to iTunes when they couldn't get
their iRiver to work. I have even used it with my mother's Rio. While
I have Realplayer on my Mac, if they don't get on the common
format bandwagon, they will fall to the wayside like Sony's non-
MP3 player.
Open the iPod?
by OscarWeb December 5, 2005 7:19 PM PST
The iPod is already open to other music stores, namely Magnatune and Audio Lunchbox. I am certain that there are several others.
Reply to this comment
eMusic
by ballssalty December 5, 2005 8:00 PM PST
Also works with the iPoo.
Magnatune
by protagonistic December 6, 2005 9:57 AM PST
the site is great. :-) I purchase a lot of my music there. Just
goes to show what can be done if you dump the DRM garbage and
get back to providing a quality product at a good price. Jobs and
Glaser could both take lessons from John Buckman.
View reply
...real player? ugh.
by knoxindy December 5, 2005 7:36 PM PST
real player is probably the worst media player out there. i absolutely hate it. its an ad-tangled resource hog that is just ANNOYING...it seems the annoying part comes straight from the man who runs it.

iTunes is defiantely the best media player and i hope the iPod remains exclusive to it.
Reply to this comment
At least Microsoft
by December 5, 2005 7:50 PM PST
rises about the slop of the scum-bucket that is Apple.

OK - so maybe not. But it's amazing how the Apple zealots & apologists come out for this story.
View all 4 replies
I agree
by December 5, 2005 8:25 PM PST
I used to have real installed on all my computers but when i used
Real(Very Rairly) then quit out of real i had to restart my computer
so i say screw real real is the one who is piggheaded. NOT apple.
Glaser needs to retire....
by December 5, 2005 8:39 PM PST
I couldn't agree with you more!

I've been an active consumer enjoying computer audio for some 15 years now and all I can ever remember was Real Networks holding their hand out and charging people for anything they could randomly think of...including my breath if they could fathom a way.

I personally don't feel a need for playing music outside of my computer but admire Apple for innovation, winning strategy and a clear mindset for the future.

Glaser is a whinny @#@%$ who has obviously hindered Real Networks. Somebody throw him off the board, duct tape his mouth and throw him in a closet somewhere. Maybe give him some cheese and crackers to go with his whine?
itunes the best music player?
by DraconumPB December 5, 2005 10:04 PM PST
I honestly don't know where people get off saying that itunes is the best music player around.

It's clunky and cumbersome, and is only good for buying music... it's basically a giant playlist that, in it's basic, default form, takes up most of your screen. There's absolutely nothing special about the way it plays music, except for the idiotic 'party mode' which is just a glorified shuffle (like how the ipod shuffle is a glorified lack-of-a-screen).

RealPlayer USED to be the worst media player out there. It has gained ALOT of technological ground since it has been based off of the open-source Helix (I think?) software, which is an OSS media player often included with Linux distributions.

It is the ONLY player I have seen that saves a variable length of a stream, DVR style, for rewinding. As such I think it is one of the best streaming applications availible currently.
View all 2 replies
Um, competition never rests
by Brian Sorby December 5, 2005 8:00 PM PST
This moron just got a bunch of cash from Microsloth. He now
wants the leader in the MP3 arena to slow down and let him catch
up...take your cash and invent something better to compete. Quit
looking for another handout!

This is not leadership...it is whining like a little bi#$t.
Reply to this comment
Real Networks? Try Real Closed.
by open-mind December 5, 2005 8:08 PM PST
Currently their Web site does not allow Mac and Linux users to
purchase and download music because it relies on the Windows
Rhapsody client for that functionality. RealNetworks will not
comment on when, or even if, a Mac/Linux client may be available.

Yeah, I know, Mac/Linux have small market share. Just like Real.
Reply to this comment
EXACTLY!
by December 5, 2005 8:24 PM PST
What in the world is he talking about? How can he moan about
compatibility when his own service is only available on one
platform! Idiots!
i really agree
by December 5, 2005 8:27 PM PST
used to have real installed on all my computers but when i used
Real(Very Rairly) then quit out of real i had to restart my computer
so i say screw real real is the one who is piggheaded. NOT apple.
View reply
Rhapsody.com is now compatible with Linux, Mac's
by December 5, 2005 9:40 PM PST
Real just switch from using that stupid Rhapsody client from a web based solution which supports Windows, Linux and Mac see http://home.real.com/product/help/rhapweb/en/system_requirements.htm

and see the News.com article http://news.com.com/RealNetworks+moves+Rhapsody+to+the+Web/2100-1027_3-5980908.html?tag=st.ref.goo

I must add that I don't like Real Networks and their stupid CEO but I had to bring up the facts.

~ Bob
View reply
Pigheadedness
by CAllenH December 5, 2005 8:15 PM PST
Glaser is being emotional and entirely misses the point. The sole
purpose of the iTunes Music Store is to sell iPods. That is all it's
ever been intended to do and every decision Apple has made
regarding it supports that purpose. As a revenue model on its
own, it is simply not worth it - Apple makes very little money on
the music sold. Opening it to other players and other
applications dilutes and defeats that purpose, and that is why it
hasn't happened. Introducing other arguements and issues is
politics and debate tactics, intended to muddy the waters and
stir up response.
Reply to this comment
Re: Pigheadedness
by Eucharist December 6, 2005 8:35 AM PST
Mr. Allen:
My response to your post is: Amen! Amen! Amen!
Rhapsody Sucks
by bdkennedy1 December 5, 2005 8:42 PM PST
So I was curious and tried it today. I have to listen to the music
from the web site and pay a subscription fee. Unfortunately,
Microsoft's $400 million will keep them in business longer.
Reply to this comment
RE: Rhapsody Sucks
by revry December 5, 2005 10:21 PM PST
From an artist's standpoint, iTunes is exactly sixty times better
than Rhapsody, music match, or any of the other services.

My son's band (Self-Titled), has been getting sixty cents per song
download from iTunes through CD Baby. Rhapsody downloads are
worth a penny each.

Do the math folks. Indy artists get a fair shake from Apple.
Real gets it right
by faithjester December 5, 2005 10:12 PM PST
Where Real is going with Rhapsody is a huge step in the right direction. The user doesn't need any bloated software -just a browser. Also,for the first time, I can access a legal music subscription service from within Linux. Now, if only they'd also port the ability to download music and burn cds.
Reply to this comment
Yeah
by Peter Bonte December 6, 2005 12:26 AM PST
How do Mac or Linux users get there music on an ipod or a WMA
player?
That's a good one!
by GGGlen December 6, 2005 7:35 AM PST
"The user doesn't need any bloated software -just a browser."
My lord, I sure hope you aren't referring to the biggest piece of
bloat on the planet, Internet Explorer!
And if you were, what in the heck are you using to PLAY the
music with? Hmmm?
That's right, a SECOND piece of software!
If you can prove to me that it's MORE efficient and LESS bloated
to use TWO software packages than one, then I'll listen to you.
Until then, let us review basic addition. Using two programs to
manage your entire music experience is using one more
program than is necessary.
Next!
View reply
Beat Apple? Build a better product.
by mgreere December 5, 2005 10:34 PM PST
Consumers don't want choice. They want a good product.

The iPod and iTunes are fantastic, user-centric products. They're
winning fairly: on merits. Word of mouth would still fetch Apple
a healthy market-share because the products are so good.

Glaser probably gets this. But if he admits it, he admits Real is
basically worthless.

Build a better experience. I'll buy it. But the idea of Real or MS
being the ones to that to market is laughable.
Reply to this comment
Same goes for Windows...
by FutureGuy December 6, 2005 8:01 AM PST
..I am guessing you didn't see this coming. Wanna beat Windows, build a better product ;), nobody wants crap even if it?s distributed free.
Ipod useage
by December 6, 2005 12:30 PM PST
How many people who have commented so far have an Ipod now, or have owned one? If you use a different player, or dumped the Ipod for one, why?

I have a Samsung YH-925GS and I love it. Napster is so-so but the player itself is fantastic.
He complains Apple is proprietary? So what is Real Player???
by Jill_Gates December 5, 2005 10:56 PM PST
Open source?
Reply to this comment
Can anyone blame Apple?
by e30mpower December 5, 2005 11:45 PM PST
I mean, this is the company that began the personal computer
revolution with the Apple II, and then the Macintosh, only to be
undermined by Microsoft with Windows. It was on track in the
early 80s for the market share that Microsoft now enjoys, and
got blindsided because they asked Microsoft to develop a
spreadsheet program for their then prototype Mac. Decades
later, Apple finds another niche with the iPod, and once again,
competitors start whining because their product isn't as good.
Furthermore, are Real media files not proprietary? Are you not
locked into using RealPlayer everytime you encounter one? Does
Windows Media Player play QuickTime files? Um no. Microsoft,
Real, and especially Sony are completely pissed because a
company they had written off as a lost-cause years ago is now
out performing them. These companies need to stop whining
and let Apple have their long-deserved time in the spotlight,
which always seems to be taken away from them by competitors'
underhanded tactics.
Reply to this comment
AMEN TO THAT!
by pilaa December 6, 2005 1:13 AM PST
I dont think I could have said it any better. Apple just keeps inventing and innovating. Wish some of these other companies would get a clue and do the same...
View reply
So I'm curious...
by ThatAdamGuy December 5, 2005 11:50 PM PST
How much does your band get when people burn a track with Rhapsody? Undoubtedly more than a penny... but...?
Reply to this comment
Real sucks balls anyway.
by UberWang December 6, 2005 12:10 AM PST
Real needs a damn better product! Real is utter tripe!!
Reply to this comment
REALly now
by npxzbebq December 6, 2005 1:09 AM PST
It's all about the software. Whoever has a better solution gets the sympathy from the consumer. Real started sucking when they started questionable "marketing" tactics with their downloads.

The argument that people are going to steal songs if they can't get music off Apple's store is just "pig-headedness!"

When was the last time you could not rip music from a CD that you BOUGHT and load that into any MP3 player?

Oh, we want convenience? In that case, BUY AN iPOD and use the iTunes Music Store. Hello, news flash: Convenience costs money! Depending on one's budget, there's a many different iPods to choose from and the cheapest one ain't that bad!

Duh!
Reply to this comment
Glaser is geting desperate...
by Earl Benser December 6, 2005 3:59 AM PST
... And he should be.
Reply to this comment
desperate??
by FutureGuy December 6, 2005 7:59 AM PST
He is sitting over 600 Million that he got from MS, he is not desperate. If MS can be sued for keeping certain portions of its server communication protocols closed. Apple should be sued for keeping its devices COMPLETELY closed.
View all 3 replies
He don't know what he's talking about
by rjmastrianni December 6, 2005 4:29 AM PST
You can get Itunes music on ANY MP3 player. You just download the song, burn it onto a CD using ITUNES, this removes the copy protection, then copy the song onto your computer, it will now be .AIFF format. From there use a program like AUDACITY to convert it to .MP3 or any other format and upload it you your portable music player. Any song from ITUNES must be burned to a CD to remove copy protection. It is that simple...This guy don't know what he is talking about
Reply to this comment
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