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To: sixty2nds who wrote (5832)10/12/2005 7:26:13 AM
From: sixty2ndsRead Replies (1) of 5843
 
18:33 RNWK RealNetworks conf call update IV: -Update-

Real clarifies that it does not have any commitment to spend any specific amt in S.A.C. payments to Microsoft.

18:28 RNWK RealNetworks conf call update III -Update-

Analysts at the start had questions about the value of the deal to Real, considering that to get $300 mln of the settlement over 18 mos, it must pay MSFT bounties for delivering subs. Real says the deal has "good economics", says it's similar to the way deals work with Real's other partners. Real hammers home the point that it can't see "any scenario" where it's not a win for Real shareholders. Real was asked if MSFT will offer its own digital music service; Real says it won't speculate, says it's happy w/ the arrangement it reached, which gives it more distribution. Analysts try to nail down how much Real will pay MSFT per sub; one analyst suggests $40 per sub, Real says its SAC costs are lower than that, also hints that it will pay different amounts, depending on the type of sub.
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