For all its fretting, the music industry wants progress because it knows it stands to benefit from such things as lower distribution costs and impulse buying online, says Pyykkonen. We have built an ecosystem over the years. Now we are building out revenue streams on that basic platform. But if music makes the change, it will become a lot clearer how much middlemen like RealNetworks stand to benefit further down the road. Given all the potential, it is no surprise that competitors are angling for some of the action.
Many analysts have doubts.
It won't be able to gain the dominant position easily. Unless Microsoft has something phenomenal, probably not. Price Ratios Growth Rates Profit Margins Wiley Reed, an analyst with Westcore Funds in Denver, says competitors will be held off by RealNetworks' solid brand presence. Right now, it does not look like it. Pyykkonen says RealNetworks had better start ramping up ad income soon.