RealNetworks' loss is Microsoft's gain
C|Net | at | by Mike
RealNetworks on Tuesday reported a third-quarter net loss that nearly doubled what it lost in the same period a year ago and warned that the fourth quarter would bring similar results. The quarter's loss came as worsening sales in the company's server business eclipsed gains in its consumer business.
Net loss for the quarter was $35.4 million, or 22 cents per share, compared with a loss of $19.4 million, or 12 cents per share, in the same quarter last year. The third-quarter loss included $30.8 million worth of special charges, including restructuring and severance, write-down of excess office facilities and some equity investments, and a write-off of net-deferred tax assets.
The company could follow the example of Netscape Communications, Microsoft's last famous victim of a bundled software strategy, and give its server software away for free, Hoch noted. Or it could charge for the server but not the individual streams or charge a licensing fee just for software integration.