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About this siteFor six years, the Internet Nexus served as my technology blog, but I've since started blogging at the SuperSite Blog instead. If you're looking for the blog, please head there. --Paul Thursday, September 09, 2004Real says digital song sale doubled market shareUSA Today: "The maker of the popular RealPlayer music/video software says it sold 3 million songs during the three-week sale. It says its market share rose to 20% from 10%, taking a bite out of Apple's 70% share, which Real says dropped to 60%. Apple disputed that, saying that it did not see any drop in market share during the past three weeks and that its sales grew each week. Real gained customers, but it will lose $2 million from the promotion, says market tracker Forrester Research. Now, Real says, it will offer a weekly top-10 singles selection for 49 cents. Current artists include the Beastie Boys, Maroon 5 and Ray Charles. Regular-priced songs are 99 cents. 'This is no different from how physical music stores work,' says Real CEO Rob Glaser. They 'offer loss leaders to get people in ... This was the biggest promotion we've ever had. Sales went up six- or sevenfold.' Real's wholesale costs are about 75 cents a song."If Real sold 3 million songs, and lost 25 cents a song, it only "lost" $750,000 during the sale, not $2 million. And that might not be a bad figure, if the company gained a large number of new customers. It would be interesting to compare this figure to how much Apple or Napster has spent per customer. You know, if that were actually possible. [ Posted at 5:11 PM | Permalink ]
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