Real Networks, the streaming media software company has joined the profits warning club. It’s Q4 revenues were predicted to be around $59m. Despite 33% year growth this was below expectations and the company slashed its earnings per share by half.
The results show how hard it can be to extract profits from subscription-based internet services. Real Networks claims 170m registered users for its giveaway RealPlayer client software, and that 85% of all streaming media web pages are downloaded to the client – which is head to head with a similar Microsoft giveaway product.
Real Networks ceo Rob Glaser said: "We are not immune to the current market environment for Internet-related spending, and we've made adjustments to our near-term growth expectations."