Rhapsody User Base Drops, Despite iPhone App Success

If you measure Rhaspody for iPhone’s success by the downloads it has accumulated — over a half million — it would be a hit. But looking at Real’s quarterly results, which reported subscriber numbers for the service, a different story is told. Rhapsody is still steadily losing subscribers, definitely not good news for the company.

Around 700,000 or so are paying accounts, down from about 750,000 in the previous quarter, and 800,000 the quarter before that. Obviously, from the steady decline, Rhapsody for iPhone has had little effect if any on Real’s bottom line.

In fact, in the results conference call, CEO Rob Glaser admitted that it was not seeing “a significant number” of new signups as a result of its iPhone venture.

The results show that a large majority of those who downloaded the application (myself included) did so just to check it out, obviously with no intention to sign up. What does this mean overall for Rhapsody? Hard to tell exactly, but I’d venture to guess consumers are finding other means to get their music fix, whether it be legal or illegal.

Let’s not call it an abject failure just yet and give Real the benefit of the doubt and another quarter. Either way, these early results are not promising.

For comprehensive coverage of the Android ecosystem, visit Greenbot.com.

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