RealNetworks also announced its quarterly financial results and though still making losses, its revenue was also up (along with Napster) but it remains way out in front with 1.12 million music subscribers, almost three times Napster’s figure. Real reported record quarterly revenue of $82.7 million, up 26 percent from $65.5 million in the second quarter of 2004. Of course, some of that comes from selling off its stake in MusicNet for almost $8 million.

“With increased profitability, record revenue and a base of more than 2 million paid subscribers, we continue to make solid progress,” said Rob Glaser, chairman and CEO of RealNetworks. “We’re especially pleased with our launch of Rhapsody 25, a compelling and legitimate free music alternative to illegal P2P sites, and our industry-leading base of 1.15 million premium music subscription customers.”

Real has yet to launch its Rhapsody service in the UK.