Despite meeting analysts’ estimates of 2 cents per share for the fourth
quarter, RealNetworks Inc. Tuesday revealed that its revenues have been cut
by 40 percent from the same period last year.
The company reported net earnings for the quarter of $3.9 million, compared
to earnings of $6.6 million, or 4 cents per share in 1999. Net revenues for
the quarter were $58.2 million, an increase of 34 percent from $43.5 million
in the same period last year.
Rob Glaser, chairman and chief executive officer of RealNetworks Inc, cited
the turbulent high-tech market that “impacts everyone” for the sharp decline
in profits, but said he and his firm are bullish on their future prospects.
Glaser referred to the company’s progress for its RealSystem iQ, a streaming
media delivery platform launched in December that has lured such tech
players as Akamai Technologies, Digital Island and Enron Broadband Services
for its ability to create peer-to-peer networks and high-tech broadcasting
Another reason Glaser said he considered his firm a grand slam, is the
establishment of its GoldPass subscription service, which he said yields
recurring revenue streams that don’t rely solely on advertising.
In its six month, GoldPass has reached 150,000 subscribers.
Just yesterday, the company scored a slam dunk by getting the National
Basketball Association NBA to agree to offer NBA.com TV to the GoldPass
subscriber base, marking the first time that cable television content will
be available live through an Internet content subscription service.
As for its key media product, RealPlayer, it is still the reigning king of
players in the market. Last week, Media Metrix reported that as of November
2000, 28 percent of users surveyed indicated that RealPlayer was their
device of choice on their home PCs.