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| Like most sellers, Apple locks iTunes music
against easy copying (BBC) |
Media software firm RealNetworks has halved the price of its music
downloads in an aggressive attempt to boost its share of the online music
market.
The company is offering songs for $0.49 each, down from the usual
$0.99, while albums are available for just $4.99.
The offer, due to last for a limited but unspecified period, is
expressly aimed at undercutting arch-rival Apple.
Advertisements for the campaign feature the slogan: "Half the price of
Apple. Welcome to freedom of choice."
Apple dominates the market for online music through its iTunes service.
iTunes, in common with most online music sellers in the US, typically
sells individual songs for $0.99.
RealNetworks' price promotion coincides with the public launch of the
firm's latest RealPlayer jukebox software, which allows users of
Apple's popular iPod portable music player to play tracks downloaded from
the RealNetworks website.
The software means that iPod users can now potentially buy their music
online from RealNetworks, as well as from iTunes.
Last month, Apple said the new RealPlayer software may have breached
its intellectual property rights, and accused RealNetworks of adopting
"the tactics and ethics of a hacker".
RealNetworks admitted on Tuesday that its price promotion would widen
its third quarter losses by one cent per share.
"This will be a short-term event," said Rebecca Jennings, senior
analyst at technology research firm Forrester.
"It is an aggressive statement that they want to grow their market
share, and encourage people who are currently downloading illegally to
start buying online music legitimately."
Industry experts said the company had probably set aside about $2m
(￡1.08m) to pay for the promotion.
(Agencies) | 
Updated: 2004-08-18 16:25