Rob Glaser, CEO of RealNetworks

This is a partial transcript from Your World with Neil Cavuto, December 5, 2001.

TERRY KEENAN, GUEST HOST: In another media battle, my next guest defends his ground as the heavyweight in the on-line media arena, bringing to the ring a more elaborate way to get everything that you need from your computer. It is called RealOne, that's the new product.

Joining me now, Rob Glaser. He is the CEO of RealNetworks.

And, it's a cool product. You say it's the best on the planet. But you know, Microsoft is out there with a competing product. You're the David here, they're the Goliath. How are you going to fight them?

ROB GLASER, CEO, REALNETWORKS: Well, we're changing the rules, basically. What Realone does is it combines the world's best media player. It integrates a media browser. So for the first time, you can actually go to the Web, get great media and put it directly into your RealPlayer, into the Realone player.

And we've also combined that with premium subscription content, including great things like Fox Sports, some of the other news products out there, entertainment programming — and the first legal music subscription service, based on our music platform, RealOne Music. And we pool all that stuff together. It's really a remarkable offering.

KEENAN: Yet, if Windows bundles its product with its Windows XP, as it is doing, why would a consumer pay for your product when they can get it with Windows XP?

GLASER: Well, we have a free product. If all you want is to get access to public Internet content, our free product is miles better than anyone else's product, whether it's bundled with the operating system or not. That's why we have 235 million users.

But the real magic here is the combination of that free software product and this premium content, which you just can't get anywhere else. So basically, think of it as sort of, you get news on demand, you get all the acts of premium sports. In fact, if you go to Foxsports.com now and you want to get audio or video, you've got to be a member of the RealOne service to get that.

And then also on the music side, we have now over 10,000 artists — people ranging from Britney Spears to the Backstreet Boys to Kidd Rock and Elvis Presley — people that go back years and years. And it's all available on like a legal Napster-type of service.

KEENAN: You know, a lot of folks that love RealNetworks — follow the company on Wall Street, love RealOne as a product — say down the road, you're not going to be able to go it alone. You might have to sell out to AOL-Time Warner, for instance. Would you be open to such a move?

GLASER: Well, we're in it for the long haul. We started our company in February, '94, so it's closing in on eight years. And our view is that this isn't a three, or a five-year, or even a 10-year type of opportunity. We think this is a once-in-a-generation, maybe once in a century kind of opportunity, to really transform media. I'm still young enough to keep moving things forward. I don't turn 40 until next January. So I think we'll be doing it for quite a while.

KEENAN: You called the settlement that Microsoft reached with the Justice Department a reward, not a remedy. Now that you're competing against them, post settlement, how much more difficult is your job as CEO?

GLASER: Well, we never counted on the federal government or the states or anything like that, doing anything, particularly, to change the competitive dynamic. We thought that we'd have to win on the merits of our products, and even if the playing field was tilted, that we'd go ahead and win anyway.

KEENAN: OK, thanks, Rob. Good to have you with us, and happy birthday in advance. Rob Glaser.

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