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RealNetworks tries Harmony to reach more portable music players

By Monica Soto Ouchi
Seattle Times business reporter

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As it stands, the wildly popular iPod — and other music players made by RealNetworks' competitors — are designed to play songs encoded in their own digital-media format.

Called Harmony, RealNetworks' technology would let consumers play music purchased at its Rhapsody store on roughly 70 portable devices that use either the Apple, Microsoft Windows Media or its own digital-media format.

A test version will be available in RealPlayer 10.5, which will be released today.

Apple did not return calls for comment.

Forrester principal analyst Josh Bernoff said it solves a pressing problem for the digital-media industry — that consumers have been asked to pick where they want to live.

"You were either an Apple person or a Sony person or a Microsoft Windows person or RealNetworks person," he said. "Your portable devices work with your music service, and you were stuck."

To some consumers, RealNetworks' announcement may not mean much. Just 5 percent of online households in the United States have a music player, and most people aren't keeping track of the growing number of competing music formats and the devices they are compatible with.

But experts say that the digital-music business will increase exponentially, particularly as Microsoft and other large companies begin rolling out their own music services. In anticipation of that, RealNetworks is trying to establish its RealPlayer as a one-size-fits-all music player that can best handle the complex universe of music formats and players.

While analysts say this removes a significant factor consumers have had to weigh when they purchase a portable music player, the means is somewhat controversial.

RealNetworks did not gain Apple's permission to use its technology, but rather "reversed-engineered" Apple's code to understand how to support its device. With Microsoft, RealNetworks has a license to use Microsoft's Windows Media technology.
 
This is not the first time the company has introduced new technology that supports a rival's product without their consent. In July 2002, RealNetworks introduced the platform Helix, which delivers audio and videos in any format, including Microsoft's Windows Media.

In that instance, RealNetworks said it did not reverse-engineer the code, but rather accomplished the feat through observation and extensive testing, based on its own knowledge of digital-media software.

Some observers say it was necessary for RealNetworks to begin supporting Apple iPod, which controls 70 percent of the digital-music-player market.

RealNetworks began selling single-song downloads in January under the Rhapsody music service, but it doesn't have a predominant music player supporting its format.

Aside from Apple, Microsoft has many devices that support its Windows Media format. Meantime, the software giant plans to introduce the first of two Portable Media Centers — handheld devices that can play videos and songs — late next month.

With the new technology, RealNetworks would support music players from iPod, Creative, Rio, Samsung and palmOne.

Richard Doherty, a research analyst with the Envisioneering Group, said the technology should remove the hesitation from consumers who haven't bought a music player because they fear being locked into one format.

"It's a feather in the cap for Real," he said.

RealNetworks shares closed at $5.36 on Friday, down 17 cents.

Monica Soto Ouchi: 206-515-5632 or msoto@seattletimes.com