Real Networks (RNWK) on the digital music business (quotes from the conf call)

| About: RealNetworks, Inc. (RNWK)

Here's Real Networks' discussion of its digital music business from its conference call:

In 2004, our music revenue grew by more than 350 percent over 2003 and we became the clear leader in music subscriptions with over 700,000 paying subscribers… we operate what we believe is the largest network of subscription music listeners. Our RHAPSODY subscribers played over 239 million on-demand songs during the fourth quarter… 18 percent increase over Q3 … early January of 2005, we announced a multi-year agreement with Comcast to provide RHAPSODY Radio, our premium commercial-free, customizable radio product to Comcast's 6.5 million broadband subscribers…

The success that we saw in the fourth quarter was also in a context where Apple was having a great fourth quarter in music. So you'd have to draw the conclusion there's a secular trend going on, which is the move to digital music and the move to legitimate digital music.

Today we and Apple compete a little bit in the track business. It's not the core of their economics. The core of their economics is selling iPods, and it's not the core of our economics, the core of our economics is subscriptions. Do I think in the future the businesses might be more competitive? Yes, it's certainly possible…

(Quotes from the CCBN StreetEvents transcript.)