Ever since people stopped needing the RealPlayer plugin for anything other than streaming reports from their town’s third most popular local news station, and replaced RealPlayer with iTunes, Windows Media Player, VLC, MediaPlayer Classic or pretty much anything else, Rhapsody has effectively been Real Networks’ thing. I mean, what else did they have? Their DVD ripping software was killed by the courts. RealArcade is fine, but marginal. Their video and audio streaming tech is outmoded, at least outside of Rhapsody, and last month, their founder and CEO stepped down after 15 years at the helm.

It’s hard to say what’ll happen to Rhapsody now, given that it won’t have Viacom’s resources and connections to fall back on, and that some of Rhapsody’s more visible marketing – namely their partnership with MTV – will probably dissolve. Maybe they’ll even move to distinguish the Rhapsody client from Real, I don’t know. But at least Rhapsody has Rhapsody. RealNetworks, as it stands, has somewhere over 1500 employees (though it’s not clear how many could be sent to Rhapsody). What are they doing? I don’t know what’s Real anymore. [MediaMemo]

RealPlayer SP is the evolution of the long-running RealPlayer software, which has become a multi-limbed beast of a program: It’s a media manager and player, along with a packaged web browser, a subscription and a la carte music store (Rhapsody), a gaming store (Real Arcade), an audio recorder, and now a streaming video ripper/converter with ties-in to social networking sites. It is at the moment Windows only, though we’re assured a Mac version is forthcoming. The beta comes in two versions: One is free, and the other costs $US40 and includes H.264 conversion, DVD playback and DVD burning.

The SP stands for Social/Portable, so you can get a hint of where they’re going with all this. In addition to RealPlayer itself, the software integrates a button to rip video into your browser (Firefox, Chrome, and IE are supported, Opera is not, no word yet on Safari). This new addition includes a converter to pretty much every portable video format you could imagine, from BlackBerry to Symbian to iPod to Zune.

Where RealPlayer SP is convenient is in this video conversion, especially if you’ve got a more niche phone or PMP (and I certainly do). Normally, conversion to Zune-supported video is kind of a pain in the arse, but RealPlayer SP handles it easily and well. For newer devices like the Palm Pre and BlackBerry Bold, RealPlayer SP can pass the converted video right through to the player, while it’s able to go through iTunes to get video onto an iPhone or iPod touch. Older or less common devices, like my BlackBerry Curve 83xx and my Zune, are still supported, but you’ll have to copy the new video files over manually.

The problem with this new iteration of RealPlayer isn’t the new features, it’s the underlying RealPlayer media software. iTunes, Zune, MediaMonkey and WinAmp are all better and more full-featured media jukeboxes, and unfortunately, Real’s new focus on streaming video is new to that category of software but certainly not new to any of us. Hell, Firefox has had extensions that can do the exact same thing for years, with admittedly weaker codec support.

I also wasn’t thrilled with the conversion speed or efficiency. Real claims a 1x conversion time, meaning 1 minute of video will take 1 minute to convert, which is actually quite pokey. A 3.2MB music video took 3.5 minutes to convert, and I ended up with a 6.6MB file. Sure, it’s not a big deal for such a tiny video, but it feels like it should have been far snappier.

RealPlayer SP is also tied in to various social networking sites, but it’s pretty half-assed: For Twitter, it just provides a link to the page of the video you downloaded, along with some prime advertisement for Real that kind of makes you sound like a jackass. The default tweet is “just downloaded so-and-so video with RealPlayer!” followed by a link to the RealPlayer download site. So get ready to follow every single one of those Twitter posts with “Clarification: I do not work for Real.”

Really, the new features in RealPlayer SP aren’t bad at all. It’s a good idea to integrate streaming video ripping into a media jukebox, and RealPlayer SP does about as good job at it as we could ask. But the overall package needs some work: RealPlayer SP is way too bloated to work as just a video ripper/converter, and as a media jukebox it’s outdated and cumbersome. Real has a good idea here, but RealPlayer needs more than some flashy add-ons. We’d love it if Real would put out the SP features in a simple applet, and leave off the browsers and media managers that we don’t give a damn about.

So who should actually use RealPlayer SP? If you’re a BlackBerry or Zune owner who uses Windows, loves YouTube and is confused by the multitude of third-party video converters, RealPlayer SP would be an excellent choice for getting video clips on your phone. [Real]

Yes, OK, we called the software lame and poked fun when it earned that inevitable injunction, but that was just too predictable to get all earnest about. Well, RealNetworks might’ve been playing a long game.

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 licence this software on the cheap to major DVD player manufacturers, who could then produce reasonably priced (sub-$US300) 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]

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 licence. 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 US$50, or US$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 US$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]