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RealNetworks goes cable
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August 15, 2000: 4:09 p.m. ET
Monthly content program reinvents software maker in image of cable network
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NEW YORK (CNNfn) - RealNetworks, the innovative software company transforming itself into an Internet media outlet, on Tuesday launched a monthly subscription-based service that offers consumers access to vintage video, exclusive concerts and other entertainment content.
Seattle-based RealNetworks likens the service, called RealPlayer GoldPass, to the early days of cable television, a time when channels and customers were few, but the possibilities were enormous.
In essence, RealNetworks (RNWK: Research, Estimates) is providing a "cable box" in the form of its RealPlayer 8 Plus Internet viewing software, and invites news and entertainment content providers to come and build up their network.
"What we are trying to do is open up the content distribution window," James Higa of RealNetworks told CNNfn.com. "That's what cable did."
 The new program, which costs $9.95 a month, is an expected move for RealNetworks. A pioneer in software that allows users to see and hear video and audio over the Internet, the company has in the past year turned its sites on becoming a content distributor, via partnerships with hundreds of broadcast networks, software manufacturers and makers of original programming.
It benefits from strong presence on the installed base of personal computers, with more than 140 million unique registered users of its free RealPlayer software.
Under the new program, users of RealPlayer 8 Plus, a feature-rich, enhanced version of the software, that sells for $29.99, will receive premium services such as software upgrades, advanced notification and sneak peaks of new feature films, documentary footage produced by ABCNEWS.com, and on-demand concerts from House of Blues (HOB.com).
And like cable TV, programming will be updated each month.
Subscription model gains steam on the Web
Other Internet content providers, such as EMusic and Mp3.com also offer subscription models, where consumers get their fill of songs for a flat monthly fee. Experts suggest that this business model may be one of the more successful ways to urge record companies, film studios and television networks - who fret about security and maximizing returns -- to pry open their archives, giving users access to a greater range of content.
"If you have millions of people coming into the Goldpass program and you are a content provider, then it starts to make sense," Higa said, noting that two million users already have paid for previous versions RealPlayer Plus.
"All that stuff that you never put on the net because you just had to many worries about it, now it starts to make sense (to do so) when you've got that kind of reach into an exclusive audience where we already have a paying relationship," he said.
"Most of the good content is just not out on the net yet," he added. "I think there is a lot of content out there that we are going to start freeing up."
For example, ABCNEWS.com for this service will produce original content on subjects ranging from the Apollo space missions to natural disasters. RealPlayer GoldPass subscribers will be able to view these stories as they originally aired and with in-depth text and graphic background on each topic.
In addition, on-demand House of Blues concerts will include performances by acts such as 311, Yes, Cowboy Junkies, Ziggy Marley, Motley Crue and Mickey Hart.
Investors cheered the move, lifting shares of RealNetworks to 44-1/8, up 2-5/8 on Tuesday afternoon. 
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Real.com: GoldPass
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