RealNetworks has appealed to Apple Computer, its Internet music rival, that the two companies come together to combat Microsoft in the digital music business, reported The New York Times on Thursday.
Rob Glaser, founder and CEO of the Seattle-based Internet music and video service RealNetworks, is reported to have sent an e-mail to Apple Chairman Steven P Jobs in this regard.
However, Glaser is said to have hinted in his mail that if a tactical alliance between RealNetworks and Apple does not come about, then RealNetworks might form a partnership with Microsoft to pursue 'very interesting opportunities', NYT reported.
Apple executives did not comment on the message, but it seems likely, said NYT, that Apple will rebuff the offer.
A pact with Microsoft will be a 'startling reversal' for RealNetworks as its complaints against Microsoft's business tactics form a major part of the European Commission's antitrust case against the software giant, said the newspaper.
Glaser, a former executive of Microsoft, left on friendly terms but later became a bitter rival after Microsoft decided that media-playing software would be crucial to its long-term growth, said NYT. The support for Microsoft's media-playing software has been rapidly growing.
There is a scramble among major technology and media companies even as the market for music and movies distributed legally over the Internet starts to take off, said the newspaper.
"Apple is the leader with its iTunes online music store, which downloads and plays songs only on Apple's popular iPod handheld devices. Besides RealNetworks, a pioneer in software for distributing and playing music and video, major companies are entering the market. Microsoft is gaining ground and making deals," reported NYT.
"The situation in the digital music industry is complex and changing very rapidly. Events like the European ruling against Microsoft's bundling of its media player into the Windows operating system could force the company to rethink its digital media strategy," said NYT.
By putting many legal problems behind it, Microsoft would be freer to compete aggressively with Apple in the music market, analysts said.
In his e-mail message to Jobs, Glazer said that he was reaching out to Jobs before making a move to switch camps. Glaser said he was surprised that the proposal had been leaked.
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