Out-Law / Your Daily Need-To-Know

RealNetworks Inc. yesterday launched a paid-subscription service for customers to watch videos, download software and play video games on-line, similar to the way cable companies charge TV viewers. If successful, RealNetworks could be forging the way in a new business model for internet content providers.

The company’s RealPlayer is the most popular free software for downloading audio and video from the internet, with over 140 million users. It has also sold 2 million copies of RealPlayer Plus for $29.99 per copy, being a more advanced version than the free software.

"This is a logical next step for RealNetworks, and an important next step for the industry," said Rob Glaser, chairman and CEO of RealNetworks Inc. "Twenty years ago the commercial cable industry was born, and over time it sparked the creation of a wealth of new programming and new business models. We think today's introduction of RealPlayer GoldPass will catalyze similar developments over the internet."

In the months ahead, the company said in a statement:

"RealPlayer GoldPass subscribers will have access to a growing variety of premier content, including exclusive celebrity interviews, hot online games, sneak peeks at top new movies, concerts and music videos, cartoons, reality programming and other special events. They will also have access to a broadening array of software and services."

Subscriptions for RealPlayer GoldPass will be initially priced at $9.95 per month, in addition to the purchase of RealPlayer Plus.

The news yesterday helped raise the company’s share price by 5.7%.

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