RealNetworks might suffer from deal between MTV and Microsoft
MTV is a force to reckon with in the music industry. The television channel has a cult following and a huge history with music in the United States. The studio is now planning to open its own digital music store in collaboration with Microsoft and this plan would make them the preferred web store on the Microsoft Windows Media Player application.
This news has however led to disappointing consequences for competitors RealNetworks in the share market. RealNetworks Inc. shares dropped more than 4 percent in trading on Wednesday after the news of the deal between MTV and Microsoft came out in the market. The deal would give MTV the technology and Microsoft the brand name to sell music to todayâ€™s youth consumer base.
The service being launched by MTV and Microsoft would be called URGE and is expected to come out sometime next year. The launch would see the service making available close to 2 million songs for sale and subscription. MTV also has plans to launch online radio stations under this brand name.
The news has also led to reactions from the market experts who believe that this deal is going to hit RealNetworks pretty badly considering the reputation they have attained in the market with their software applications.