Glaser turns wrath on Apple, Jobs

Cnet ^ | 12/05/2005 | Greg Sandoval

[Panerai]

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 "pig-headedness." 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.

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.

[Sundog]

Thanks for the pointer.

[durasell]

You misunderstood -- or I didn't make myself clear -- on "mature market." A mature market doesn't have to do with the age of the consumer, but the number and types and price of units out there.

[Psycho_Bunny]

 In July 2004, RealNetworks released a version of its music download service compatible with Apple's iPod

Real.  Is there a bigger bunch of hypocritical, limp-wristed, a$$hole leeches on the planet?

Just try to do anything with one of Real's formats without their written permission.

Just try it.  I dare you.

They'll come down on you like the Wrath of Pansies.

Real makes SCO look good.

[BurbankKarl]

Glaser and Real are a bunch of losers.

[truthandlife]

Jobs is a smart man and his "razor-razorblade" business model works and if I were Jobs I would continue to not open up the IPod until I start losing marketshare and then it will need to be opened up.

[RinaseaofDs]

As soon as I saw the Ipod, I said to myself, "You Apple people better invest well, and you better have something else up your sleeve, because the clones will be here by Christmas."

I started seeing them in August. I still haven't bought one based on my experiences with being addicted to PDA's.

Shame on MS, by the way, for squandering some pretty serious opportunities.

I want my music to reside on my computer, with other documents, directions to various places I want to go, shopping lists, etc.

When I pull my car in the garage, the car passes information about itself (brake wear, gas milege, time to next oil change, etc.). I want the computer to pass any recently posted recall data to the car, and service advisories, etc.

I want to go in to my office, change up the music mix, download the days working docs, shopping lists, etc. then walk out of the office.

I want to wake up, start the car, have all that stuff downloaded to my car and enjoy the new music, news, directions, traffic advisories, construction slowdowns etc. that are now in my car's computer.

When I get to work, I want to pull out the thumb drive from the dash of my car and go into my office, where I plug it into my Bose Wave radio where it will play my music.

Everything I'm talking about is basic, basic tech today. The fact I can't buy a car with something like that is idiotic.

[durasell]

Three things could happen --

A)someone could come up with a really innovative system that blows the iPod away.

B)The Chicoms decide to dump several hundred freighters filled with cheap players into the U.S. market.

C)There's a massive technological convergence in which EVERY device becomes a player, i.e. phones, PDAs, watches, etc. etc. with the features and memory that people want.

[Question_Assumptions]

To be fair, Microsoft is not a monopoly but has some monopoly-like powers. Apple is not a monopoly, either, in the portable music player market. The question is whether they have monopoly-like power over that market. The only place where they seem to come close, since there is competition, was with their big memory chip deal that shut out the competition.

[SunkenCiv]

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.

Yeah, y'know, because the consumers are the ones who do all the pirating... makes sense... ;')

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.

That's odd. I thought Bill Gates could do no wrong and never settled out of court -- because he drives the plaintiffs out of business so fast by first borrowing their ideas (ahem) and them giving away clones of their products, that they don't have time (or money) to go to court.

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."

It's not worth it because (as much as I like Real streams so that I don't have to use MS products) the quality is lower.

[N3WBI3]

There are already cheap cheap players and knockoffs... The "Ipod is on its way out" crowd has been screaming for four years straight and yet the sales continue to increase..

[antiRepublicrat]

A I mentioned. B is a different market, cheap players, which will never be "in." C is already happening, but as usual mixed-function devices aren't as good as dedicated devices (I have a Cell/Palm, and it isn't great as either).

I don't think anyone will take over as long as Apple keeps raising the bar.

There is one other thing not related to the device itself -- a massive market shift of where people get their online music to someplace that locks out the iPod.

[antiRepublicrat]

You're close on the music. You can buy cars with iPod support, and you can buy stereos with iPod docks. Keep it all on your iPod. And you can take your other documents since the iPod also acts as portable file storage.

[durasell]

The iPod still has the best design, I have to admit that. They were smart enough to know that it's part fashion and not all technology. The players offered by Dell, for instance, look like something a NASA engineer would own in 1967.

The first company that comes out with a cheap, cheap player wrapped in a plastic case that looks hip, will eat Apple's lunch.

[savedbygrace]

Real friends don't let friends use Real Player.

[Mr. Blonde]

I know but my point is even with other options young people are still going to want the "cool" one and that is hands down the iPod. And later on people will stick with the iPod because that is what they know. Apple also has an advantage by having a store on most campuses. Students can charge one to a bursar and pass the student discount on to their parents. Why go for a knockoff when you don't even have to pay for the best one?

[Lx]

Steve Jobs is a nasty man.

That is too funny. While I'm no fan of Jobs, he did turn Apple around, he has been a true visionary on the direction of the Mac O/S and people are snapping up Ipods as fast as they're made.

As for the requisite Microsoft bashers, Windows 2003 is an awesome O/S. Stable as a rock, easy clustering, what's not to like? You would think someone who made money like Gates would be a hero to conservatives. Too bad Gates now feels guilty for making money so he's going down the liberal route of apologizing for his wealth by giving to the U.N. and other un-American agencies.

[Terpfen]

They were smart enough to know that it's part fashion and not all technology.

No, they were smart enough to know that a simple interface combined with a bundled program that allows you to buy content would be successful.

You people who keep saying that the iPod is on its way out completely miss the point of the iPod's success: it makes content available for the consumer. Cheapo Chinese mp3 players will not.

[SunkenCiv]

Well put. I particularly liked how a judge in one of the phases refused to recuse himself despite having 1000s of Microsoft shares.

[discostu]

They should be able to get down to 25 bucks. When you get right down to it all an MP3 player is is a flashdrive with some audio playing software and a headphone jack. Flashdrives are already down to $25 http://www.bestbuy.com/site/olspage.jsp?skuId=5553386&type=product&id=1055388009930
a headphone jack should be able to be added for pennies, the most expensive thing to add is making the audio software small enough to not eat too much space.

[N3WBI3]

They are already out there:

http://www.macobserver.com/article/2002/07/22.10.shtml
http://p2pnet.net/story/4203

None of them work with iTunes (which is a huge part of the iPods success) and none of them innovate or push, they wait for apple to make a move and then follow.. This will hurt apple if they stop moving but they have not yet done that.