Apple was not amused that RealNetworks’ plans to bring forth a way for Real users to transfer music bought at Real’s music store to the iPod. The Cupertino, California computer giant said July 29 that they were looking into “the legal implications” of what they called Real’s “adopt[ing] the tactics and ethics of a hacker to break into the iPod.”
Real began offering a test version of its new RealPlayer 10.5 media player, which, among other features, lets users move Real-bought music to the popular Apple iPod portable digital media player. Yet at the same time Apple was suggesting possible legal action against Real, according to one report, Apple also said it was “highly likely” that Real users would stop using current and future iPods.”
Schwab Soundview Capital Markets analyst Michelle Gutierrez told reporters iPod is Apple’s most important division because of visibility and high growth – over 4 million iPods have been sold and over 100 million songs downloaded from iTunes Music Store – but that Real’s software adjustments to make their music files compatible to the iPod should not impact Apple too highly if at all.
“It hasn’t been proven that RealNetworks provides a benefit,” Gutierrez said. “Their songs are not cheaper and they don’t have a broader selection.”
Apple’s July 28 statement said the company was “stunned that RealNetworks has adopted the tactics and ethics of a hacker to break into the iPod.”
In a related development, Apple has a deal with Motorola to put a version of the iTunes Jukebox onto Motorola cell phones, which Apple said was helping the company become “the Microsoft of [digital] music.” This mobile version of iTunes will be available on all Motorola mass-market phones with music capability in the first half of 2005, Apple and Motorola said.
