RealNetworks Announces Record 3 Million Songs Sold in Three-Week Music Sale

9/9/04

More than 96% of Music Fans Say in New Survey That the Digital Music They Purchase Should Play on Any Device

Top Tracks to Remain 49 Cents

SEATTLE, /PRNewswire-FirstCall/ --
RealNetworks(R), Inc. (Nasdaq: RNWK) announced today that music fans purchased more than 3 million songs during the three-week promotion celebrating the company's new Harmony(TM) Technology, and said it would continue to offer some of the most popular downloadable tunes for just 49 cents per song.

"Music fans who want choice are turning to Real," said Rob Glaser, CEO and founder of RealNetworks. "We are the only place consumers can buy music and enjoy it on any popular portable device, we offer the best price on the Top Ten, and we provide the most compelling subscription music service, Rhapsody."

Rolling Stone Top 10
RealNetworks and RollingStone.com also announced a new weekly top 10 list, the "Rolling Stone Top 10." Each week, the Rolling Stone and Rhapsody(R) editorial teams will compile the list, which will offer consumers ten of today's most popular and noteworthy songs for 49 cents each. The Rolling Stone Top 10 list will be based on a combination of Rolling Stone hot lists, the most popular songs played each week on the Rhapsody subscription service and the top downloads at the RealPlayer(R) Music Store.

Like each of the more than 640,000 songs available through the RealPlayer Music Store, the Rolling Stone Top 10 is available in high quality 192 kbps RealAudio(R) 10 with AAC. Music purchased from the RealPlayer Music Store is the only DRM-protected digital music available that can be played on all popular portable devices, including all Windows Media DRM-enabled devices, all Apple iPods and all Helix DRM-enabled mobile devices.

The inaugural Rolling Stone Top 10 list unveiled today includes:

-- Triple Trouble, Beastie Boys
-- Turn Me On, Kevin Lytle
-- Off With Your Head, Sleater-Kinney
-- Let Me In, Young Buck
-- My Place, Nelly
-- She Will be Loved, Maroon 5
-- Float On, Modest Mouse
-- You Don't Know Me, Ray Charles
-- The Revolution Starts Now, Steve Earle
-- Date With the Night (live), Yeah Yeah Yeahs

James Valentine of Platinum artist, Maroon 5, said, "It's exciting for us to have been involved with the beginning of this new age of digital downloads. It's a new era. It's getting easier to obtain music legally and cheaply online, and people are starting to catch on. I'm really glad that people are figuring this stuff out and that broad compatibility is starting to happen. Pretty much all of the new music I buy now is from online stores, and I'm not the only one."

Consumers Believe that Compatibility is Important

Results from a nationwide survey conducted by Global Market Insite(GMI)*, which was commissioned by RealNetworks, support the Company's focus on compatibility.

According to the study, performed by GMI:

-- More than 96% of portable digital music player owners say they should be able to transfer music they purchase online to any portable device.
-- More than two-thirds (66%) say they will only shop with online music services that offer wide compatibility.
-- When asked to rank which stores offer the widest compatibility, consumers ranked the RealPlayer Music Store number one, ahead of Apple's iTunes Music Store.

Feedback from RealPlayer Music Store users has included:

"The new Harmony software from Real has been a lifesaver and works flawlessly -- not to mention that a little competition on price doesn't hurt. It's great to finally have an option that works for me." -- Christopher, iPod and RealPlayer Music Store user, New York.

"I bought my iPod because I thought it was the best player out there, but not having any options when it comes to purchasing music is disappointing. I love my iPod, but I want to be able to get my music from where I want to get it, not from where I'm told to get it." -- said Mike, iPod and RealPlayer Music Store user, Sunnyvale, CA.

Next Steps for Harmony - Rhapsody
RealNetworks also said it will integrate Harmony technology into its Rhapsody service later this year. This will further establish its leadership in music compatibility by enabling Rhapsody subscribers to transfer purchased downloads to a wide variety of portable devices. RealNetworks is the market leader in music subscriptions, with more than 550,000 paying members for its innovative Rhapsody and RadioPass music services.

*Detailed survey results are available upon request

About RealNetworks
RealNetworks, Inc. is the leading creator of digital media services and software including the award-winning Rhapsody Internet jukebox service and RealPlayer 10, the first product to integrate finding, organizing, buying, playing and managing digital audio and video in a single product. Consumers can access and experience audio/video programming and download RealNetworks' consumer software at http://www.real.com. Broadcasters, network operators, media companies and enterprises use RealNetworks' products and services to create and deliver digital media to PCs, mobile phones and consumer electronics devices. RealNetworks' corporate information is located at http://www.realnetworks.com.

NOTE: RealNetworks, Rhapsody, RealPlayer, RealAudio, Harmony, Helix, and the Real logo are trademarks or registered trademarks of RealNetworks, Inc. Other companies or products listed herein are trademarks or registered trademarks of their respective owners.

This press release contains forward-looking statements that involve risks and uncertainties, including statements relating to: (a) the future release of Harmony technology with other RealNetworks products, including Rhapsody subscription services; (b) RealNetworks' continuing ability to maintain compatibility between Harmony technology and future versions of popular portable devices, including future versions of the Apple iPod; and (c) RealNetworks' continued ability to offer selected music tracks at prices lower than those offered by other online music stores. Actual results may differ materially from the results predicted. Factors that could cause actual results to differ from the results predicted include: development and consumer acceptance of legal online music distribution services; the success of the Freedom of Choice campaign; risks associated with the sustained adoption and use of RealNetworks' services by customers, including the uncertainty of whether consumers will continue to pay for subscription content over the Internet, which is a relatively new and unproven business model; the potential that we will be unable to continue to enter into commercially attractive agreements with third parties for the provision of digital music content; the emergence of new entrants and competition in the market for digital music content; competitive risks, including competing technologies, products and services, and the competitive activities of our larger competitors, some of which have strong ties to streaming media users through other products. More information about potential risk factors that could affect RealNetworks' business and financial results is included in RealNetworks' annual report on Form 10-K for the year ended December 31, 2003, and its quarterly reports on Form 10-Q and from time to time in other reports filed by RealNetworks with the Securities and Exchange Commission.

SOURCE RealNetworks, Inc.
Web Site: http://www.realnetworks.com

 

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