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Sat, Jan 02, 2010 - 12:02 PM EST  —  AAPL: 210.732 (-0.908, -0.43%)  |  NASDAQ: 2269.15 (-22.13, -0.97%)

JP Morgan downgrades Real, says iPhone app won’t save Rhapsody
Friday, September 11, 2009 - 12:24 PM EST

Apple Store"JP Morgan analyst Vasily Karasyov downgraded RealNetworks (RNWK) to 'Underweight' from 'Neutral' this morning, citing concerns that Rhapsody's iPhone app won't help buck subscriber declines at the music site," Rory Maher reports for The Business Insider.

"Karasyov doesn't believe there is much room for growth on top of the 750K subs reported by Rhapsody last quarter. In fact, he believes subscribers could continue to decline given strong competition from iTunes and limited consumer demand for a subscription streaming service," Maher reports. "The company lost 50,000 subscribers last quarter."

Maher reports that RealNetworks' shares "are down almost 7% [today], giving back pretty much all of yesterday's gains."

Full article here.

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Sep 11, 09 - 11:32 am Comment from: Apple Cider

Okay, finally the subscription fanboys can go away. Steve knows best. We want to own our music.

Sep 11, 09 - 11:40 am Comment from: deepdish

I didn't know Real and Rhapsody were still functioning.

Sep 11, 09 - 11:46 am Comment from: Anonymous©

If anyone actually uses the Rhapsody app, I'll be shocked!

Sep 11, 09 - 11:47 am Comment from: Demon

Paid Subscription services for Music are a fantasy. They just will not work. Real has held on by them pumping in their cash reserves till the money was gone then borrowing all the money they could. Now they are running out cash again. I'll give them 3 to 4 months and they'll have to have secured more funding, sold Rhapsody or closed it down.

Sep 11, 09 - 11:47 am Comment from: Cubert

The problem with Real is that their Krispy Kreme budget is larger than their R&D;budget.

Sep 11, 09 - 11:57 am Comment from: x

Glaser, the fatass like that lardass shithead Balmer, does not know his head from his ass. He is goin down baby.

Sep 11, 09 - 12:46 pm Comment from: DLMeyer

I disagree. I expect this app will help slow the losses - possibly even foster a resurgence of sorts - and allow the company additional breathing space before things get too hairy to bear. Am I talking about snatching victory from the jaws of defeat, here? No, just an extended survival.
And, I don't understand how an "analyst" can manage such a spot-on call for one of Apple's "competitors" and still be so often so wrong about Apple itself. Oh, right, forgot about the "managing the market" scam. Harrumph!

Sep 11, 09 - 02:30 pm Comment from: HD Boy

The market for a monthly subscription streaming music service is no larger than the old-fashioned market for subscription CD by mail services. It is a small, niche market that few consumers want to be locked into. Besides, even the subscription CD services allowed you to own your own music (i.e: all the CDs) at the end.

Why doesn't the traditional Windows cartel get this?

Sep 11, 09 - 05:18 pm Comment from: Matt

To me, the app is D.O.A. since the audio quality stream is so poor (64kb). If the quality were higher, I might even consider it.

Sep 11, 09 - 05:31 pm Comment from: Apple Cider

Let me clarify-- it's streaming services I'm bashing-- don't even get me going on M$'s sudden disappearance of tunes after a certain number of listens.
I actually do have an eMusic account and do enjoy my 40 downloads a month for just over $100 per year.
I like that math.

Sep 11, 09 - 09:41 pm Comment from: alansky

Why is it that companies keep trying things that obviously don't work? People are so stupid that it's a wonder anything works at all.

Sep 12, 09 - 10:27 am Comment from: ralph from berlin

@hd boy

subscriptions are doomed.

that being sad you can keep a number of tracks though every month (10 with the $15 a month zune pass for instance)

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