When it comes to making personal copies, U.S. District Court Judge Marilyn Hall Patel left that totally gray—that is, she chose not to rock the boat on whether or not making personal copies actually falls under the "fair use" doctrine of the DMCA. Lots of "mays" and "whiles" in there:

"So while it may well be fair use for an individual consumer to store a backup copy of a personally owned DVD on that individual's computer, a federal law has nonetheless made it illegal to manufacture or traffic in a device or tool that permits a consumer to make such copies."

So DVD ripping is kind of like laws about pot in some places: It's sorta legal to possess in certain circumstances, but not kosher to sell it. Thanks for clearing that up, judge.

What that means for Real, and their long-term plans—a box that archives DVDs—is even murkier. [Wired, NYT]

After getting cornered with a few leading questions about whether or not RealDVD software is capable of copying rented DVDs (err, yes?), RealNetworks and the MPAA directed the discussion towards the company's plans for Facet, a $300 DVD-ripping player inspired by the massively expensive Kaleidoscape boxes of yore. Real CEO Rob Glaser even went so far as to lay out what's really at stake in this case:

If we're enjoined (from selling RealDVD), it would have very dire consequences frankly for us to ever be in this business.

And this is just a preliminary hearing. Essentially, if the court rules against RealDVD, then Facet—and its software, which would presumably be licensed to other DVD player manufacturers—would be dead in the water. Moreover, the precedent could make any DVD backup solution much more difficult to bring to market. Shitty, all around.

But the more I think about it, the less this strategy makes sense. Testing the waters with a low-stakes product isn't a bad idea in itself, but RealDVD is the wrong low-stakes product for the job. Real claims that Facet copies DVDs to an internal HDD, but offers absolutely no means by which these files could be shared—they're DRMed, disconnected from the outside world a locked in an actual box. RealDVD, on the other hand, copies films to your PC's drive and wraps them in iTunes-style DRM, which allows playback on up to five machines. That opens opens a piracy angle for the MPAA—one that could conceivably swing the case in their favor, killing RealDVD and precluding production of Facet for reasons that don't even apply to it. [CNET—Photo courtesy of Greg Sandoval/CNET]

If you don't recall, RealDVD was a late, unusual addition to the DVD copying field. By late, I mean the latter half of 2008, and by strange, I mean not free. Surprise! The MPAA is outraged, and the product is pulled from shelves literally days after launch. Now the controversy is making its way to a federal court, where Real attorneys will square off against whatever reptilian law-creatures the movie industry is employing these days, and the fate of RealDVD will be decided.

But the NYT thinks they've uncovered RealNetworks', ehh, Real™ intentions: to build ripping capabilities into mainstream DVD players. It's all part of a project called Facet that actually predate RealDVD, at least internally, by some time. Real wants to license this software on the cheap to major DVD player manufacturers, who could then produce reasonably priced (sub-$300) DVD-saving players.

Fun, right? Well, the underlying technology is pretty much RealDVD on Linux, so it—and pretty much any other integrated DVD player backup solutions—is depending on courtroom victory this week. If this is really their strategy, then RealDVD was might have never even a serious product—just a sad, legal, sacrificial lamb. [NYT]

Both the Ibiza Rhapsody Mini and Ibiza Rhapsody Touch are equipped with Wi-Fi capabilities for content browsing and instant downloading. While they are still working on getting YouTube, Facebook, and Twitter accessibility, the Mini and Touch are already set to go with Rhapsody, Flick, Audible, and Internet radio.

Although both MP3 players will be 3.5x2.0x0.4 inches—and will come in sizes ranging from 8GB-32GB—the Mini has a 2.2-inch color screen with a four way d-pad and supports MP3, AAC and WMA, while the Touch is equipped with a 2.8-inch touch screen, bluetooth connectivity, and is able to play MPEG-4, H.264, VC-1 and DiVX 3/4/5, and stream stereo audio.

Stay tuned as there is still no word on pricing or release date. [CNet]

The arguments centered around fair use: Real claimed that making a bit-for-bit copy of the film, which is what their software did, falls under that umbrella. The studios claim that fair use does not include decoding a movie from any media besides the original DVD — something what RealDVD enables. Far from the legal victory or even protracted, public battle that Real was hoping for, the decision will likely hold into the foreseeable future. [Wired Threat Level]

In a small victory for Real, they got the case moved out of the studio-infested Central District to California's Northern District court. Now they just have to convince the studios and the judge that the extra DRM sprinkles it piles on top of the rips make RealDVD totally kosher. [Electronista]

The stakes for RealNetworks aren't terribly high either, as sales of RealDVD might have been slow because of, oh, I don't know, the mountains of free software that does a better and more complete job. Within the day, Real filed a countersuit which could possibly set a new precedent for the interpretation of the Hollywood's DVD license. Even in a best-case scenario, the most legal headway that could probably be made would be to permit neutered software like RealDVD, which would still leave any useful method of DVD backup well outside of the law. [NYT]

For $50, or $30 for a limited time, RealDVD allows you to rip standard DVDs in perfect quality to your hard drive (no Blu-ray), complete with bonus features, menus and such. The process takes anywhere from 10 to 40 minutes and requires 4-8GB of space. The catch is that these video files can only play in Real's player and cannot be converted for use by your other devices, like iPods or phones.

RealNetworks' solution is that you can buy four additional licenses for $20 apiece to view your content on other PCs. And it's not a very good one.

Then again, it's important to note that this is the DVD copying solution that the industry has allowed. And even with the strict limitations in place, it's surprising that you don't need to have the actual DVD in the drive to play the ripped files. [RealDVD]

RHAPSODY AND YAHOO! ANNOUNCE STRATEGIC PARTNERSHIP IN DIGITAL MUSIC

Yahoo! to Exclusively Offer and Promote Rhapsody for On-Demand Music Services

SUNNYVALE, CA AND SEATTLE - February 4, 2008 - Yahoo! (Nasdaq: YHOO) and Rhapsody® America, the award winning digital music service of RealNetworks® (RNWK) and Viacom's (NYSE:VIA and VIA.B) MTV Networks, today announced a broad strategic relationship in digital music. Rhapsody will be the exclusive on-demand music service for Yahoo!, replacing Yahoo! Music Unlimited. Yahoo! Music and Rhapsody also intend to collaborate on other digital music services such as music downloads. The partnership introduces Rhapsody's award-winning subscription music service to the largest online music audience through Yahoo! Music and reinforces Yahoo!'s focus on providing users with a destination to easily access the best music services and content from across the web.

In the coming months, Yahoo! Music Unlimited subscribers will be migrated to Rhapsody's digital music service through a simple process that will convert Yahoo! Music Unlimited subscribers' music libraries to Rhapsody. Current Yahoo! Music subscribers will have the opportunity to maintain their existing pricing tiers for a limited time period after migration to the Rhapsody service. Additional details will be communicated to Yahoo! Music subscribers closer to the date when account migration begins.

"By partnering with Yahoo!, we are connecting Rhapsody's 'jukebox in the sky' with one of the biggest music audiences on the web," said Rob Glaser, chairman and CEO of RealNetworks. "Soon, tens of millions of Yahoo users will be able to access their favorite music through Rhapsody - wherever they go, whenever they want it."

"This agreement allows Yahoo! to continue its focus on being the Internet's leading starting point by creating an indispensable music experience that will drive music fans to Yahoo! first on their path to music discovery," said Scott Moore, Senior Vice President and Head of Media, Yahoo!.

The partnership coincides with an announcement by Yahoo! that it has acquired FoxyTunes, the company that developed a popular toolbar plug-in that enables users to control more than 30 desktop and Web-based music players. FoxyTunes also allows users to easily find lyrics, videos, bios and more, based on what is currently playing in a user's media player. By giving Yahoo! users an easy and agnostic tool with which to control and play music, FoxyTunes' functionality across multiple music sources and services also furthers Yahoo!'s goal to be more open. To read more about this announcement, please visit Yahoo!'s corporate blog at yodel.yahoo.com.

"Our partnership with Rhapsody, the acquisition of FoxyTunes and the release of the web-based Yahoo! Media Player moves Yahoo! Music closer to our goal of enabling users to play all of the music on the Web," said Ian Rogers, Vice President of Video and Media Applications, Yahoo!. "But, it doesn't end there, Yahoo! Music will continue to innovate and forge new ways to marry music content with the rich content of the Internet."

"Rhapsody connects fans with more music, in more ways and through more devices than any other on-demand music service," said Neil Smith, Vice President of Marketing for Rhapsody America. "As an unlimited access, on-demand service, Rhapsody is a perfect complement to Yahoo!'s vibrant Yahoo!Music site."

First, there's a $330 unit available in four colors, with 30GB hard drive and Bluetooth for wireless headphones and A2DP streaming. It will also have an FM radio and "custom skinning" for a personalized UI. Next up, in the "near future" will be a $230 4GB flash-based model, and a $250 8GB one. Neither of those will have Bluetooth. Prices don't include Rhapsody portable subscription, which at last check was $15 per month.

In addition to browsing all of Rhapsody's content, you can pick up free AOL Video clips, subscribe to podcasts directly from the device, and update firmware without going to a PC. [Rhapsody and Haier via Electronista]

The cute little ZoneBridge is actually the best part of the news to me: rather than paying for a $350 ZonePlayer to connect to your router (which may be somewhere that will never need music), you can drop $100 to start the connection. As we told you earlier, ZoneBridges will also be good for fleshing out the mesh network in big-ass homes.The addition of the two music programs means that the Sonos now has a heady number of music-source choices. Both Rhapsody and Napster offer free anonymous no-credit-card one-month trials, so you'd be dumb not to try out both for the duration before making a decision. I've traditionally favored Rhapsody, but Napster is coming in $3 lower, at $10 per month, so that's going to make it a contender.

The Best Buy Digital Music Store is a Rhapsody-powered service that will cost $15 per month and won't have a free trial. However, it is a way for Best Buy to promote Sonos systems in the store, so I guess it has its purpose. Sonos also has Sirius and Pandora on the dial, for still more options. At some point, does it get too crowded in that Controller? I am starting to wonder. [Sonos]

It's a match-up of make-life-easier products, albeit two of the more famous underdogs in the whole digital-home arena. I had the chance to play around with the software and shoot a gallery of screens to give you an idea of how TiVolicious the Rhapsody experience just got.

You pop through menus with the familiar TiVo feedback sound effects, spelling out song and artist searches exactly as you would for TV shows or actors. You can drill deep with a progressive search (names appear as you type) or stay at high level, looking at Rhapsody's new releases and suggestions. You can add songs to a queue, though you can't edit playlists. And if you really want cruise control, there's are plenty of radio options, too. No matter where you are, a tap of the loop-back "return" button will take you to the Rhapsody main menu. (It won't skip back 15 seconds in a song, though.)
What I like, besides the free no-commitment get-hooked-on-crack free trial, is it solves that whole file management problem: you don't need to care about what music is where, or worry about the file formats or DRM issues.

Also, like on the Sonos, Rhapsody on TiVo lets you share DJ responsibilities with others: at a party, you can literally pass the remote around the room, so that everyone can queue up a track or two of their liking. A power-hungry music maniac like me can't relinquish control, but my therapist tells me that this would be a good idea, so I encourage you to try and share.

Of course, the tradeoff is $13 per month once you climb on board. Once you have an account, you can use it on your computers as well as your TiVo, but it's still a significant relationship with RealNetworks. The good news is that soon, MTV will take an active role in the already-established partnership known as Rhapsody America. That means Rhapsody's library and decent software plus all of those sweet MTV Urge playlists.

Since we just got it, I don't have any real nasty things to say, but I'll play around with it and let you know if there's anything to warn you about. For now, though, I am looking forward to browsing music on the big screen.

Software roll-out is happening already, with most broadband-connected TiVo users being set up with the app by the end of the month. If you want to try to weasel your way to the front of the line, you can visit tivo.com/rhapsody and sign up.

Press Release:

Rhapsody and TiVo Deliver Millions of Songs Direct to the Living Room

Rhapsody Digital Music Service Now Available on the TiVoR Service

ALVISO, Calif. / SEATTLE- October 9, 2007 - TiVo Inc. (NASDAQ: TIVO), the creator of and leader in television services for digital video recorders (DVRs), and RhapsodyR, the leading digital music service, today announced they have made available a transformative way for consumers to experience digital music in the home by delivering instant access to the Rhapsody music service through any broadband-connected TiVo box.

This groundbreaking combination puts millions of songs and thousands of Internet radio stations at consumers' fingertips from the comfort of their living room, cementing TiVo's status as the undisputed universal home entertainment center. TiVo subscribers can easily search for music directly from their TiVo box and instantly play anything from Rhapsody's extensive music catalog of over four million songs using TiVo's intuitive remote control and EmmyR award-winning user interface.

"By adding music to our portfolio of broadband offerings, TiVo is the only universal entertainment provider in the living room," said Tom Rogers, CEO and President of TiVo.  "Since the beginning, TiVo has been focused on the principle of choice and control, giving our users the ability to experience TV on their terms.  Together, TiVo and Rhapsody have extended the personal viewing experience on TiVo into music, providing consumers with an incredibly easy way to access their favorite artists from their television set.  Our customers can not only navigate through hundreds of TV channels and thousands of movie downloads, they now have access to millions of songs all on their television set."

"We're thrilled to bring Rhapsody into the heart of the living room with TiVo," said Rob Glaser, chairman and CEO, RealNetworks, which in partnership with MTV Networks, owns and operates Rhapsody. "By partnering with TiVo, we can now give consumers easy and unlimited access to Rhapsody's library of four million songs from the comfort of their sofa. This is another important step as we fulfill our mission of bringing Rhapsody to consumers whenever and wherever they want it."

"Rhapsody on TiVo gives music fans a cool new way to connect with the music and the artists they love," said Michael Bloom, GM and head of Rhapsody America. "The combination brings Rhapsody alive as a social music experience in the home, and gives a whole new meaning to the term 'house DJ.'"

Among other capabilities, consumers can search for music directly from their TV using TiVo's intuitive search feature, browse charts of Rhapsody's most popular, artists, albums and songs, check out weekly lists of new releases, or listen to thousands of radio stations that suit virtually any mood. TiVo users can also use the famous peanut remote's Thumbs UpT and Thumbs DownT buttons to rate their favorite music. Rhapsody provides consumers with music recommendations based on their ratings, personal music tastes and listening habits.

The launch of Rhapsody on TiVo represents a fundamental leap forward in making Rhapsody accessible anywhere consumers want to enjoy music — on the computer, portable music device and mobile phone, and now through the television. The addition of music also adds to the diverse array of entertainment options for TiVo customers, joining movie downloads from Amazon, online content from sources such as The New York Times and The Onion, and the ability to share home movies through One True Media.

To celebrate the launch of this new service, TiVo subscribers have access to a free 30-day trial of Rhapsody. Consumers can choose to continue their Rhapsody service beyond the trial period for $12.99 per month. Current Rhapsody subscribers who have broadband connected TiVo DVRs can access their existing Rhapsody music libraries (including artists, albums, playlists and channels) via their television at no extra charge.  Subscribers can learn more about Rhapsody on TiVo and sign-up for the priority list found at www.TiVo.com/rhapsody to ensure that the Rhapsody update is delivered to their TiVo boxes as soon as possible.

Details on the Rhapsody music service can be found at www.rhapsody.com.  The new TiVo HD and other TiVo DVRs are available at leading consumer electronic retailers including Best Buy, Circuit City and Amazon.com. See www.TiVo.com for details.

The positioning is obvious to anyone who's watched the bloodbath of non-Apple music stores over the past few years. Urge was supposed to be Microsoft's darling, and the key to its Windows Media Player 11 and Vista music strategy. That is, until the new baby Zune came along and Urge was left playing in the road like a foster child. An article today in the Wall Street Journal said that the Verizon Wireless angle is also clear, since Apple "angered" many carriers by deciding to go exclusive with AT&T.

Regarding DRM-free music, Real chairman Rob Glazer said that the company started its trial of DRM-free tracks fro Universal today, but did not indicate if DRM-free music would ever be available for download to a cell phone.

As the Journal predicted, Urge's GM, Michael Bloom, will run the new company, and the Urge brand will cease to exist.

[WSJ]

Press Release:

MTV Networks, RealNetworks and Verizon Wireless Join Forces To Offer A New Integrated Digital Music Experience

NEW YORK - Aug. 21, 2007 - RealNetworks, Inc. (NASDAQ: RNWK), MTV Networks, a division of VIACOM International (NYSE: VIA.A and VIA.B), and Verizon Wireless, a joint venture of Verizon Communications (NYSE: VZ), and Vodafone (LSE: VOD) today announced they are teaming to create a single, integrated digital music experience that consumers can access via their PC, portable music device or mobile phone. Promising to be ultra-rich in music culture, programming and discovery, Rhapsody will unite the best of RealNetworks' market-leading service and MTV Networks critically acclaimed URGE music service. Verizon Wireless' V CAST Music -the most successful mobile music service in the country - will become the mobile platform for the integrated Rhapsody service.

As part of this alliance, MTV Networks and Real are forming a new company, Rhapsody America, whose offering will be the exclusive digital music service for Real and for MTV Networks' premier music and pop culture brands in the United States. Both partners will bring complementary strengths, including MTV Network's storied history in music programming, unparalleled connection with music fans, and youth marketing prowess, with Real's innovative technology, market momentum for Rhapsody, and deep relationships within the consumer electronics industry. Michael Bloom, previously General Manager of MTV Network's URGE, will lead Rhapsody America, which will have offices in New York, Seattle and San Francisco.

Real and MTV Networks, through their Rhapsody America venture, have formed a long-term, groundbreaking and exclusive relationship with Verizon Wireless, in which the companies will be partners in bringing consumers digital music to their PCs and over the air to their mobile phones. Through the relationship with Verizon Wireless, Rhapsody will be fully integrated with VCAST Music, delivering a superior music service across multiple consumer devices.
"With RealNetworks and Verizon Wireless, we're creating a unique and engaging experience that also reflects our own strategy of allowing fans to go narrow and deep into the musical genres they love," said Judy McGrath, Chairman and CEO of MTV Networks. "Any time we can partner with industry leaders like this to create a new music proposition, everyone wins, especially the audience."

"Today's announcements represent a sea-change in the digital music market," said Rob Glaser, chairman and CEO, RealNetworks. "By partnering with MTV Networks, home of the most storied brands in music history, and the market's leading wireless company, Verizon Wireless, we'll make Rhapsody the premier digital music service that delivers great music to millions of consumers whenever and wherever they want."

"By bringing together the cultural and musical heritage of the MTV Networks family with the functionality of Rhapsody and the reach of V CAST Music, it's like we've put the best lead singer, drummer and guitarist all on the same giant stage, allowing music fans to experience the purest music play in any way they want," said Van Toffler, President of MTV Networks Music & Logo Group. "The new Rhapsody will build on the musical curation of URGE and have the marketing power of MTV, VH1 and CMT behind it, ensuring this new platform is front and center in the hearts and minds of music lovers."

John Stratton, executive vice president and chief marketing officer of Verizon, said, "Our commitment to innovation and making V CAST Music the #1 mobile music service in the country has led to today's momentous announcement. Verizon's alignment with these two great companies - MTV Networks' music and youth marketing expertise with RealNetworks' acclaimed service and technology - promises to propel digital music into an exciting new future. Together, our three companies will provide a new, unbeatable digital music experience that will give every consumer a way to get music quickly and easily - whether sitting in front of a computer screen or on-the-go with a mobile device."

Real, MTV Networks and Verizon Wireless will leverage their complementary strengths to bring the new service to market and back it up with an aggressive advertising and promotional campaign. Verizon Wireless will market Rhapsody through its extensive network of Verizon Wireless Communications Stores nationwide when the service launches on mobile phones. Rhapsody will become the music service of choice across MTV Networks' MTV, VH1, and CMT brands and their myriad of online youth-culture touch points. On-air integration for the new service will begin next week and Rhapsody will also be integrated into the fabric of MTV's marquee event, the Video Music Awards airing live from Las Vegas on September 9th.

Customer Experience
Starting today, URGE customers can use their existing usernames and passwords to log in to Rhapsody and enjoy access to both services. In addition, Rhapsody customers can get their first taste of MTV Networks' rich programming from MTV, VH1 and CMT. Verizon Wireless customers can already download music instantly to their V CAST-enabled phones at any time and from anywhere in the V CAST service area and transfer digital music to their phones from their PC. In the months ahead, Verizon Wireless will roll out functionality that sends the duplicate copy of songs purchased over the air directly to a customer's Rhapsody account. The service will also allow transfer of subscription music from a Rhapsody account to a mobile phone.
Rhapsody will also continue to be offered through RealNetworks' extensive network of partners, including Best Buy, SanDisk and TiVo.

Press Teleconferences
Today's news was announced this morning at a press teleconference by executives from RealNetworks MTV Networks and Verizon. Replays of the teleconference will be available at 1:00 p.m. ET/10:00 a.m. PT via a toll-free call at 1-888-484-8256 and at 1-203-369-3737 for international callers.

About MTV Networks
MTV Networks, a unit of Viacom (NYSE: VIA, VIA.B), is one of the world's leading creators of programming and content across all media platforms. MTV Networks, with more than 137 channels worldwide, owns and operates the following television programming services - MTV: MUSIC
TELEVISION, MTV2, VH1, mtvU, NICKELODEON, NICK at NITE, COMEDY CENTRAL, TV LAND, SPIKE TV, CMT, NOGGIN, VH1 CLASSIC, LOGO, MTVN INTERNATIONAL and THE DIGITAL SUITE FROM MTV NETWORKS, a package of 13 digital services, with all of these networks trademarks of MTV Networks. MTV Networks connects with its audiences through its robust consumer products businesses and its more than 260 interactive properties worldwide, including online, broadband, wireless and interactive television services and also has licensing agreements, joint ventures, and syndication deals whereby all of its programming services can be seen worldwide.

About RealNetworks
RealNetworks, Inc. brings digital entertainment to consumers on every screen. Real's heritage of delivering groundbreaking digital entertainment products and services includes creation of the streaming media category with the introduction of RealAudio in 1995. Since then, Real has continued to be a leading force in the market, pioneering products and services that include: RealPlayer, the first mainstream media player that lets consumers download and record Internet video; the acclaimed Rhapsody digital music service, which serves up more than 1 billion songs per year; RealArcade, one of the largest casual games destinations online; and a variety of mobile entertainment services, such as ringback tones, offered to consumers through leading mobile operators around the world. RealNetworks' corporate information is located at www.realnetworks.com/company.

About Verizon Wireless
Verizon Wireless operates the nation's most reliable wireless voice and data network, serving more than 62.1 million customers. The largest U.S. wireless company and largest wireless data provider, based on revenues, Verizon Wireless is headquartered in Basking Ridge, N.J., with 67,000 employees nationwide. The company is a joint venture of Verizon Communications (NYSE: VZ) and Vodafone (NYSE and LSE: VOD). Find more information on the Web at http://www.verizonwireless.com. To preview and request broadcast-quality video footage and high-resolution stills of Verizon
Wireless operations, log on to the Verizon Wireless Multimedia Library at
http://www.verizonwireless.com/multimedia.

Forward Looking Statements:
This press release contains forward-looking statements that involve risks and uncertainties, including statements relating to: the creation and future growth of a compelling digital music service by Rhapsody America; customer acceptance and adoption of the Rhapsody America service; the impact of MTV Networks' marketing support on the Rhapsody America service; and the launch and integration of the Rhapsody America service with Verizon's music service. Actual results may differ materially from the results predicted. Factors that could cause actual results to differ from the results predicted include: development and consumer acceptance of digital music services generally, including the adoption of mobile phones as a music platform, and Rhapsody America's service in particular because these are relatively new and unproven business models and markets; the emergence of new entrants and competition in the market for digital music services; risks inherent in strategic relationships, especially with competitors, including the formation of Rhapsody America and the related transaction and commercial agreements with MTV Networks, and technology and service integration efforts, as well as risks specifically associated with the combination of Real's Rhapsody service and MTV Network's URGE service; and risks relating to the ability of Real's strategic partners, including MTV Networks, to generate subscribers for Real's digital content services. More information about potential risk factors that could affect RealNetworks' business and financial results is included in RealNetworks' annual report on Form 10-K for the most recent year ended December 31, and its quarterly reports on Form 10-Q and from time to time in other reports filed by RealNetworks with the Securities and Exchange Commission. The Company assumes no obligation to update any forward-looking statements or information, which are in effect as of their respective dates.

# # #

So why do we care? This new edition of the clix has been tweaked—and while the hardware remains unchanged—the software has been modified with "Rhapsody DNA," allowing the user ways to discover new music on the road. And we dug it.

We've always been suspicious of memberships like Rhapsody. After all, there are a limited number of tracks with odd holes in the artist lineup, and you lose all your precious music whenever you leave. But despite these subscription stereotypes, which turned out to be completely true, we still think the service is worth considering.

The Library
The fundamental basis of Rhapsody is in the Library. When browsing either through their bundled software or logged in through their website, it only takes one click of a button (that looks a lot like play) to add a track or entire album to your Library. Building your Library is like an Amazon shopping spree, as each artist's page holds recommended artists that lead you to more recommended artists. And with one click, each album is yours.
Then, using the bundled software, it's just a matter of dragging and dropping to your clix to load the music. Your computer then downloads the tracks straight to the clix, which takes about a minute and a half per album. (You can also play the music either online or through the software, which requires only a few seconds to buffer and load.)

But while building a Library from recommendations works well, we aren't seeing the real potential of clix Rhapsody implementation yet—better known as Channels.

Channels
The Channels are where Rhapsody and clix come together...sorry for this...harmoniously. While Rhapsody has long offered Channels—which are essentially 26-track radio stations that allow you to explore music that's in a similar vein to your favorite artists—the clix allows you to easily rate and tag the new music you like. We'll explain...
Scenario: You are on the subway, listening to a Channel named "Bands Like Death Cab for Cutie." After skipping through the tracks like a playlist, you find a song by the Pixies you like. You hold the right direction on the clix to access a special menu and select "Add to Playlist." Then, when you reconnect the clix to your PC, the song is quickly added to your Library.

And if you want to access all the Pixies' albums, they're just a right click away. But even better, you can build your own Channels based upon your favorite artists, which will customize music precisely to your taste. Greatest invention ever, right? It sure feels like it, and the experience of "Rhapsody DNA" on the clix feels so close to perfect.

Issues
The problems we had weren't due to either the clix or the Rhapsody service—both of those elements are pretty remarkable on their own.
We had issues with the required RealNetworks' Rhapsody software. First, there are just way too many buttons, tabs and windows. Simple tasks become tedious as you realize that Channels aren't listed in your Library, but under their own tab within the Library. And updating Channels seems to require going through the clix's icon, not your user/PC library. Confusing? Exactly.

The software would run but barely functioned on a p4 1.8ghz machine. Files often wouldn't upload, etc. It worked better on our newer system, but it was riddled with frequent microdelays, many of which are due to track caching, many of which are due to (we're guessing) bad programming.

The clix is a powerful video player, and Rhapsody has a multitude of music videos for streaming. Why can't you load these videos onto the clix? If it is possible, we were unable to find a way.

The Rhapsody software will detect your iTunes library and import it, even offering to find subscription versions of your tracks/albums to fill out your collection. The process takes hours, literally. But luckily you only do it once.

You can record both voice and radio on the clix Rhapsody, fluidly and clearly. But within Rhapsody's software, there is no option to download these MP3s to your collection. Luckily, you can download this content directly from the device.

And no Mac support will deter a small market of users.

Conclusions
Despite these setbacks, we'd highly recommend the $189.99 clix Rhapsody player. A $12.99 monthly fee is the price of an album, and we guarantee you'll be downloading hundreds of dollars of music within the first day with recommendations that are far more than a gimmick. The clix is a great piece of hardware by itself. Its OLED display is bright and colorful, its menus are intuitive and its Rhapsody integration within UI is extremely fluid. (Why the volume buttons are mapped backwards, we'll never know.)

We're just hoping that the middle management software gets an update soon.

It won't work on DRM'd enabled content. But so many sites use Flash players as their sole download deterrent, or video streams that can't be saved as more than a bookmark otherwise. The UI on the player pops up over a Flash or movie stream window, allowing you to click to download. What's cool is that it preserves meta-data, like name, rating, description, and where you got it from. Sharing videos with friends at that point sends the source URL instead of the actual video file. Right now, it can't transcode, but it will burn DVDs if you pay for the registered version. Thankfully, the freeware still rips.

Will it nag you to upgrade in old school Real fashion? I don't know. But the beta is live now, and it's worth checking out. [UPDATE: June...live in June, not now.]– Brian Lam

RealNetworks Introduces Breakthrough New RealPlayer

New One-Click Downloading Lets Consumers Enjoy Videos from Thousands of Web Sites Wherever and Whenever They Want

CARLSBAD, Calif., D: All Things Digital Conference - May 31, 2007, 11:30 a.m. Pacific Time - Leading digital entertainment services company RealNetworks® today unveiled the new RealPlayer®, the first media player to make it one-click simple to download online videos from thousands of Web sites. The new RealPlayer makes it easy for consumers to watch videos whenever and wherever they want, burn them to DVD and CD, and share video links with friends. Most major formats are supported, including Real, Windows Media, Flash, and Quicktime. The new RealPlayer will be available for free beginning next month at RealPlayer.com.

"The new RealPlayer gives consumers more control of Internet video than was ever possible before," said Rob Glaser, chairman and CEO of Real. "By floating a "download this video" button next to video seen on thousands of Web sites, RealPlayer makes it one-click simple. The new RealPlayer is a major step towards realizing our vision of bringing great digital entertainment to more people on more screens around the world."

In 1995 RealNetworks gave the Internet a voice with the first-ever Internet broadcast via the release of the RealAudio® player, an innovation that garnered Real a coveted Emmy Award® by The National Academy of Television Arts & Sciences. Since then, the RealPlayer has become one of the most downloaded software applications on the Internet, with an average of more than 1.5 million copies downloaded daily.

Fast Facts about the New RealPlayer:
n Consumers can use the innovative, single-click process to quickly download and save videos for later enjoyment.
n Consumers can download multiple videos simultaneously with RealPlayer, allowing people to save time and easily multitask. Users can also start downloading in the middle of watching a video, and the entire video will be captured.
n Consumers don't need to worry about video format compatibility issues - the new RealPlayer supports videos created in the most popular formats, including Flash, Windows Media, Quicktime, and Real.
n Consumers can easily burn videos to CD (or to DVD, using RealPlayer Plus). The Video CD format used by RealPlayer can be played in most DVD players.
n Consumers can send links of their favorite videos to their friends with a convenient "Share with a Friend" feature. The link that arrives in their friends' email will direct them to the online source of the video content their friend downloaded.
n RealPlayer supports both downloading and recording for popular streaming format (Windows Media, Real, and Quicktime)
n RealPlayer will only download/record video that is not protected by DRM (Digital Rights Management) systems.
n RealPlayer features an improved look and feel, a streamlined installation process and faster video playback.
n RealPlayer will first be released for Windows, and will work with both Microsoft Internet Explorer and Mozilla Firefox. Real plans a version for the Mac to be released later in the year.

"RealPlayer feeds the appetite consumers have for interesting Web video while maintaining a connection with the content source," said Lisa Hungness, general manager, New Media for National Geographic Magazine Online that hosts video content, including WildCams—Web cams that stream live video of animals in the wild, connecting people to animals and environments around the world at www.nationalgeographic.com/wildcam. "Our WildCam fans love to download and share our video. Thousands of our clips are posted across the Web. This will be a great new trend in online video viewing for consumers and content owners alike because consumers can share links back to the videos' origin where similar experiences may be found and enjoyed."

"Time-shifting of recorded or downloaded content is a natural next step in the progression of the online video distribution and consumption," said Michael McGuire, vice president, Gartner, Inc.. "For online video fans, the ability to capture, store and forward content is going to be transformative."

A beta of the new RealPlayer will be available for the public in June 2007 via a free download from www.realplayer.com. Consumers and media are invited to visit the www.realplayer.com site to participate in the RealPlayer blog, register for product information and updates, and share ideas about how the new RealPlayer's capabilities could change the face of online video.

Future versions of RealPlayer, which are now in development, will enable users to transfer online video content to their personal media devices for on-the-go viewing.