Digital media company RealNetworks announced the results of its third quarter ending September 30th, 2007 (read press release). The company's net income was up 276% to $42,153,000. It should be noted that a generous chunk of that the Microsft impact plus other items items -- equity investment gains, stock-based comapensation expenses and tax impacts of the items -- net income was $8.7 million.

RealNetworks recorded revenue of $30.3 million in its music division, $29.5 million in media software and services and $22.5 million in games. Seventy-four percent of its revenue came from the United States. Music subscribers rose 350,000 in the quarter to 1.65 million.

paidContent has excerpts from RealNetworks' analyst call. On the company's acquisition of WiderThan, CEO Rob Glaser said, "Unlike pure content-based businesses such as ringtone aggregation which are vulnerable to commoditization, Real and WiderThan’s carrier services are technology-based and thus deeply embedded in the carrier’s network. Further, combining the strength of Real’s Rhapsody music service with WiderThan’s successful mobile music service will help us realize our vision of the future of digital music."