The anti-iPod alliance splinters

Today's Wall Street Journal notes that RealNetworks' Rhapsody service is ditching Microsoft's Windows Media technology in favor of developing their own music player with SanDisk. I noted last Saturday that PlaysForSure licensees would be storming Microsoft's Redmond headquarters in protest because of Microsoft's launching its own proprietary Zune player and service to compete with them. Sounds like RealNetworks CEO Rob Glaser is in the front row with a pitchfork.

But the marketing challenge for RealNetworks and others is that without Microsoft's deep marketing support and subsidies, they are going to have to spend millions to successfully parry Apple's iPod marketing juggernaut. Given RealNetwork's online heritage, Blackfriars predicts they'll turn to online and non-traditional marketing for their cost efficiencies and ability to reach a young and hopefully influential music buyer. But it is going to be an uphill slog, since Real will be competing against not one but two big technology brands -- Apple and Microsoft -- to win customers.

Who knows? If enough PlaysForSure licensees sue, maybe Microsoft will pay enough in settlement fees to fund the marketing program. But frankly, I wouldn't invest money betting on that outcome.

Full disclosure: I do hold some Apple shares.

Technorati Tags: Apple, iTunes, Microsoft, Music, RealNetworks, Real, Rhapsody, Zune