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  Apple Is Tough Foe for Microsoft and Real, Analysts Say
Time: 07:50 EST/12:50 GMT | News Source: eWeek | Posted By: John Quigley

Apple Is Tough Foe for Microsoft and Real, Analysts Say By Elizabeth Millard October 12, 2005 1 comment posted Add your opinion Microsoft Corp.'s deal with RealNetworks may strengthen its position against close competitors, but analysts say the company still faces major hurdles if it wants a slice of Apple Computer's market dominance. As part of a legal settlement over antitrust issues, Microsoft will pay RealNetworks $460 million in cash and give the company another $301 million in services that include promotion on Microsoft Web sites. But observers have noted that the deal will do more than smooth some of Microsoft's antitrust woes: It will also provide a potential partnership for competing against Apple's iTunes in online audio and video. As part of the settlement, Microsoft extended a licensing agreement to support Real's Rhapsody digital music subscription service on its MSN Web network properties.

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