• by April 15, 2004

Ugggh. It's tax day.

I just signed off on my return--at the last second, of course.

Earlier this week, MediaDailyNews reported on the numbers of American taxpayers visiting online tax preparation sites. Apparently, the number of taxpayers filing electronic returns is hitting a record number.

The Internal Revenue Service (IRS), the federal agency we love to hate, reports that it received 5 million more electronically filed returns in the week preceding today's deadline, compared to the same period last year. That translates into a 12 percent jump in efilings. Last year, the IRS reports that it received 53 million efilings; it expects that exceed that number this year though it hasn't projected by how much.

The IRS reports that taxpayers filing via their home PCs accounted for more than 11 million returns for a 21 percent increase from last year.

Apart from the taxing nature of tax prep, there's real news today about RealNetworks. The new media technology company's pitch to form an alliance with Apple against Microsoft in the digital music biz seems like a gesture born out of desperation. A secret email from Real's Rob Glaser to Apple's Steve Jobs indicated that if a partnership wasn't in the cards, Glaser would jump back on the Micro-ship. (Glaser is a former Microsoft executive).

Real, known for its streaming video and audio technology, has been floundering for a couple of years trying to find its footing. It tried to position itself as a provider of premium content, that is, until every other online provider gained access to similar "exclusive" content deals. It tried to build a business model based on selling premium subscriptions. P.S. If Yahoo! continues to build its business in these area, Real better get realistic about its chances.

But what this back-and-forth is really about is control vis-à-vis the digital distribution of music, movies, and other forms of content via devices, the Web, and who knows what other medium. It is also a fight over which technology will have supremacy. Through its iTunes Music Store, Apple has proven itself a force to be reckoned with; Microsoft is battening down the hatches to develop its own online music and content system. In fact, it is expected to partner with hardware marketers to debut a handheld device by yearend. But who knows?

The turf wars over digital rights, content management and distribution, and technology standards have only just begun. Alliances are forming, but the sands will continue to shift.