“Standard & Poor’s Equity Research downgraded RealNetworks to ‘hold’ from ‘buy’ and lowered its target price to $6.50 from $8 after a news report that Microsoft is planning to launch a subscription online music service. ‘RealNetworks alluded to such plans during its recent analyst meeting, but the stock’s reaction today indicates to us that an entry by Microsoft is not already priced into the shares. We also think there is a good chance that Apple Computer and perhaps others will explore such offerings in the coming months,’ the research firm reasoned as RealNetworks’ shares tumbled,” Forbes reports.
Full article here.
MacDailyNews Note: Apple is currently down US$1.84 per share to $35.81 today.
MacDailyNews Take: If subscription services become popular enough, Apple could offer such a service rather quickly and easily, we believe. Currently, Apple’s iTunes Music Store’s market share continues to increase and Apple is smart to let others spend now to educate the public about the subscription concept before taking the market if it proves viable.
Related MacDailyNews articles:
Microsoft plans music subscription service, may allow conversion of Apple iTunes-purchased tracks – June 10, 2005
Report: Apple iTunes Music Store more popular than most peer-to-peer file sharing services – June 07, 2005
Apple’s iTunes Music Store passes 430 million downloads, market share increases to 82-percent in May – June 07, 2005
Merrill Lynch analyst: Apple could ‘flick the switch on a music subscription model’ – May 13, 2005
Why ?
Ever single subscription service is barely holding on. They can’t turn enough profit to keep from collapsing. They are being subsidized by other businesses.
people want to own their music for ever. if I wanted to rent music I would listen to the NPR, and donate to them every quarter.
Two points:
First: If Apple iTunes music store already has 82% of the market that doesn’t leave much for these other guys to carve up.
Second: If iTunes did a a rental feature, they would probably capture most of the rest of the 18% remaining. And considering the success they’re already having with the iTunes store, they could easily undercut the competition and soak in all the customers.
MW: “every” every customer will us iTunes.
>I would listen to the NPR, and donate to them every quarter.>
Finally that socialist bunch have a conservative in charge and they’ve sacked Bill (red) Moyers.
cptnkirk, you nailed it!
“Two points:
First: If Apple iTunes music store already has 82% of the market that doesn’t leave much for these other guys to carve up.
Second: If iTunes did a a rental feature, they would probably capture most of the rest of the 18% remaining. And considering the success they’re already having with the iTunes store, they could easily undercut the competition and soak in all the customers. “
Interesting that this news comes on the heels of Intel inside Mac’s in ’06 bomb. M$ is running scared.
Rock on Steve!
Can anyone tell me what is appealing about renting music?
“On June 3, S&P Equity Research reiterated a “buy” rating and $8 price target on RealNetworks after the company highlighted opportunities in digital media and outlined its leadership position in music [and they believed them?], games and video. However, S&P Equity Research concluded that “despite appealing [giggles] franchises, concern about competition causes us to lower our opinion and to cut our target price [to $6.00].” The research firm rates Microsoft at “strong buy” [snickers] and Apple at “hold.” [guffaw, etc.]
Only a *slight* re-adjustment on the RealNetworks share price of 25%. This research group is on crack or something.
Fsck You ron, you red-necked prick!!
S&P’s ‘anals’ got this ass backwards: “The research firm rates Microsoft at “strong buy” and Apple at “hold.” “
Should obviously (to those in the know) be AAPL “strong buy” and M$FT a “hold”.
MacMaster, if you keep feeding the trolls they will NOT go away!
If anything, Napster should be the one taking the hit. At least Real does more than subscription music.
Subscription music = satellite radio. I’d rather have XM/Sirius over Microsoft/Yahoo/Real/Napster any day.
BITCHSLAPPED!
God…M$ stock has been stuck at $25 now forever it seems. Anybody that would buy it now really needs to have their head examined. That stock is a “hold” if there ever was one…
Dang, talk about taking them out at the knees. geez…
MacMania, you’re absolutely correct, I guess I’m just so tired of everything being politicised these days, but you’re right, responding is only taking the bait.
MW=using, as in using better judgment from here on.
Blah! Blah! Blah! For some this is all academic. In A’stralia we still don’t have iTunes Store. Also, my experience with the use of the US iTunes Store is that the bit rate is so low that that it is laughable to refer to the music as near cd quality.
Alas, this Mac user is still forced to buy and swap cds. Oh! I’m sorry I’m not supposed to admit to that last point.
A pox on the record companies and DRM of any flavour. Sosumi!!!!
MacMaster:
“Fsck You ron, you red-necked prick!!”
Yet again another fine example of the white-sheet wearing KKK that the Democrat Party is. Liberals pose as inclusive people, but are really using all minorities in their quest to make a socialist America.
Are you yourself being used?
http://capmag.com/article.asp?ID=383