Investors reacted well to news that RealNetworks' will spin off Rhapsody unit. Shares rose 5.5% on Wednesday and increased another 4.1% on Thursday, closing at $4.57.

Before the end of the trading day on Thursday, RealNetworks announced it expects to achieve Q1 2010 revenue of $124 million. The consensus estimate was $137.2 million. Nevertheless, the company's stock price edged upward during afternoon trading.

After the markets closed, RealNetworks announced a Q4 2009 loss of $13.3 million on revenue of $145.5 million. Music revenue dropped 3% to $37.6 million. It was the third consecutive quarter music revenue dropped and the lowest quarterly music revenue since Q2 2008.

Rhapsody subscribers fell to 675,000 in Q4, a decrease of 25,000 and the third consecutive quarterly decrease.

For the full year, revenue dropped 7% to $562.3 million. Music revenue improved slightly to $160.9 million.

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