Feeds

Real versus Spotify: the battle for subscriptions

Behind the Rhapsody Apple play

The Essential Guide to IT Transformation

Real is the latest company to goad Apple, taking aim at its selection policy for the iPhone App Store. Real said yesterday it's going to submit a Rhapsody application, daring Apple to refuse it.

In an announcement on Sunday, Real announced and demoed the application, giving subscribers access to its 8 million song catalog. The initial version won't cache songs downloaded from a desktop PC, but this functionality is promised.

It looks a bit like this.

Streaming music rival Spotify has taken a similar very public approach. Both offer a subscription alternative to Apple's own a la carte iTunes download service, which leads the digital music market by 69 per cent, and accounts for one in four songs sold in the US.

But Spotify has much more at stake than its older rival.

Real has other fish to fry, while Rhapsody itself is a sustainable business, gathering $15 per month from every subscriber. By contrast, Spotify gives away the lemonade for nothing, yet it still has to pay pennies for every song it streams. Spotify makes next to nothing from advertising, and needs money coming in, so it's asking for a tenner a month for the mobile client. If Spotify can't get traction with a mobile version for a paid version, then... it's going to need to sell a lot of T-shirts. Or do something else.

We exclusively revealed subscription and advertising numbers from Spotify here.

Real originally offered streaming music from AOL, but acquired Rhapsody from Listen.com in 2003.

Apple's dominance of the music player and digital retail markets has attracted antitrust concern in Europe. Perhaps that explains why Apple bounced Google's telephony app - but has allowed Last.fm and Pandora streaming music applications through the gate. ®

Build a business case: developing custom apps

More from The Register

next story
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Sonos AXES support for Apple's iOS4 and 5
Want to use your iThing? You can't - it's too old
Amazon says Hachette should lower ebook prices, pay authors more
Oh yeah ... and a 30% cut for Amazon to seal the deal
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
Joe Average isn't worth $10 a year to Mark Zuckerberg
The Social Network deflates the PC resurgence with mobile-only usage prediction
Chips are down at Broadcom: Thousands of workers laid off
Cellphone baseband device biz shuttered
Feel free to BONK on the TUBE, says Transport for London
Plus: Almost NOBODY uses pay-by-bonk on buses - Visa
Nintend-OH NO! Sorry, Mario – your profits are in another castle
Red-hatted mascot, red-colored logo, red-stained finance books
Twitch rich as Google flicks $1bn hitch switch, claims snitch
Gameplay streaming biz and search king refuse to deny fresh gobble rumors
Stick a 4K in them: Super high-res TVs are DONE
4,000 pixels is niche now... Don't say we didn't warn you
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
The Essential Guide to IT Transformation
ServiceNow discusses three IT transformations that can help CIO's automate IT services to transform IT and the enterprise.
Maximize storage efficiency across the enterprise
The HP StoreOnce backup solution offers highly flexible, centrally managed, and highly efficient data protection for any enterprise.