SharkJumping

So RealNetworks and Microsoft finally announced today their long awaited settlement of Real's anti-trust litigation, with Real receiving $461M in cash, and $300M of promotional credits, as well as pretty broad integration of Rhapsody and RealArcade into MS properties such as Messenger, Music and Search - the RNWK stock promptly shot up 35%. 

I have to give Real's CEO, Rob Glaser, full credit for this deal.  We may not always have agreed on operating or management philosophies, but he almost single handedly drove this litigation against a lot of naysayers, and it turned out be a huge win for Real's shareholders, including myself :)  He could have settled just for cash, but hung in there to negotiate as broad a business relationship as possible.  The integration of Rhapsody into MSN's properties will certainly drive overall usage, and the web-Rhapsody version they showed looked pretty cool, although we'll have to see it in full release before passing judgment.

What this means for MSN Music is unclear, but can't be good for that unit since they have a negligible impact on the music market so far.  And Napster?  I assume we'll see some type of announcement around their earnings call which repositions them as a music destination site since it's time for their semi-annual business plan revamp.  And Apple?  My guess is they ship a subscription service in the Spring, but it's too early to tell.