Is RealNetworks Muscling in on Napster's Turf?

Back in January I wrote up an article about the state of streaming media, in which I pointed to an uncertain future for RealNetworks. Looks like they've decided that they want to become the cornerstone of all online media, signing agreements to broadcast Major League Baseball and the NBA, and now a major agreement to establish a new music subscription service online, which they've dubbed MusicNet.

Can both Real and Napster coexist using similar subscription models? With Real's MusicNet you will presumably get access to the each labels catalog, but will be unable to download it to your computer. Napster on the other hand allows downloads, but will probably only have popular music available from their partner Bertelsmann, as the other labels continue to snub Napsters offers.

I'm making a not-so-bold prediction here.... they'll both flop. Many who used Napster in the past have jumped ship to any number of the alternate file-sharing systems that have popped up over the past year. When their subscription model launches this summer, we'll see just how faithful Napster users really are.

Real already has a few subscription based services which have yet to show any signs of taking off. Streaming media still has a ways to go before it gets to become an entirely enjoyable experience anyhow, nobody wants to pay for inferior product. Back to the old marriage adage: Why buy the cow when you can get the milk for free.....