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The Guardian - UK
The Guardian - UK
Technology
Bobbie Johnson, technology correspondent

This means war

Back last month when Real Networks said that it was making songs available for download to the iPod after the cracking of Apple's proprietory code, it was apparent that a conflict was building between the two companies.

"[The] company has been threatening to make this move for a couple of months, ever since he [Real boss Rob Glaser] claimed publicly that Apple founder Steve Jobs refused to reply to his emails when he suggested working together on enabling universal digital music compatibility," reports MacNewsWorld

Now things have taken a further step. An online petition from Real has somewhat backfired and now Real is slashing the price of their downloads to 49 cents, effectively stoking up a price war.

"But the offer won't come cheaply for Real Networks. The company said Tuesday that the campaign could increase its third-quarter loss by a penny per share," says CNet.

Comment: There are serious questions about Digital Rights Management at stake here. For Apple, the iPod is effectively a loss leader, with the real money to be made from drawing people into the brand. But should one company really be the only one able to offer iPod downloads?

Whatever the issues, though, Real has gone off the deep end. If they really believe that they should take Apple on, surely this is not the best way to go about it. While Steve Jobs recovers from his cancer operation, Real sticks the boot in, annoys its investors and - ultimately - fails to align itself with public sympathy.

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