Digital music sales for RealNetworks Inc. remained flat in the second quarter. But company executives say they are encouraged by the reception for a new service introduced at the end of the quarter.

In Q2 RealNetworks, No. 89 in the Internet Retailer Top 500 Guide, posted music sales of $37.2 million, an increase of 1% from $36.8 million in the second quarter of 2007. For the first six months of the year, digital music sales reached $75.1 million, an increase of 6% from $70.9 million in the prior year.

揙ur Q2 music revenue results were basically flat, consistent with our expectations,?says RealNetworks CEO Rob Glaser. 揥e spent all of Q2 preparing for one of the most important product launches in our company抯 history, which we call Music Without Limits. The launch took place on June 30th and is off to a good start, especially on the mobile side.?

Overall RealNetworks posted a net loss of $1.3 million on revenue of $152.6 million for the second quarter ended June 30, compared with net income of $1.3 million on sales of $136.2 million in the second quarter of 2007. For the first half of the year, the company recorded net income of $1.1 million on revenue of $300.2 million vs. net income of $41.3 million on sales of $265.6 million for January through June 2007.

Rhapsody, RealNetworks?digital music service, teamed with MTV Networks and Verizon Wireless in June to extend access to digital tunes by expanding DRM-free music selections, offering full-length song samples and purchase options on social networking sites, and integrating the download service with mobile phones.

Dubbed music Without Limits,?the initiative has several goals. First, it seeks to propel the move away from proprietary digital rights management formats by making music from all major labels available in the DRM-free and interoperable MP3 format. Second, it looks to enable music fans to stream full-length songs and buy MP3s anywhere they want online, including popular music sites and social networks.

"We achieved solid results in the second quarter," says Glaser. "We also launched a major initiative ?Music Without Limits ?that substantially strengthens Rhapsody by integrating mobile music and legal MP3s from all major labels."

 

 

 

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