RealNetworks says it generated $7.9 million in digital music revenue during the fourth quarter of 2003 -- a 70% increase over the $4.7 million it had in the third quarter. For the year, Real generated

RealNetworks says it generated $7.9 million in digital music revenue during the fourth quarter of 2003 -- a 70% increase over the $4.7 million it had in the third quarter. For the year, Real generated $15 million in digital music revenues.

Third- and fourth-quarter numbers reflect sales through the Rhapsody service (which has been re-christened RealRhapsody) and RadioPass, a subscription radio product.

The full-year numbers also include revenue from MusicNet, a digital music joint venture between Real, Warner Music Group, EMI and BMG. Real dropped distribution of MusicNet in the middle of last year following its acquisition of Rhapsody parent Listen.com.

The announcement marks the first time that Real -- which now claims more than 350,000 subscribers for Rhapsody and RadioPass -- has broken out digital music revenues.

Fourth-quarter net loss grew to $5.3 million, due in part to the company's pending antitrust lawsuit against Microsoft. In the final quarter of 2002, Real reported a net loss of $2.5 million. Fourth-quarter 2003 revenues increased 17% to $54.1 million.

Real narrowed its full-year net loss to $21.5 million, or 13 cents per share, vs. a net loss of $38.4 million in 2002. Revenues for the year grew 11% to $202.4 million.

Real stock closed yesterday down 30 cents at $6.14.

Questions? Comments? Let us know: @billboardbiz

Print