March 15th, 2000

[3:00 PM] RealNetworks Leaves Apple Hanging On The Tree, Plucks Windows Media Player For Licensing by Staff Apple's efforts to control the Internet's streaming media content was dealt a major blow today. RealNetworks, maker of the wildly popular RealPlayer, announced today that they have reached an agreement with Microsoft to license the software giant's Windows Media technology. According to a story on C-Net: Streaming media leader RealNetworks has licensed technology from Microsoft, its primary competitor, signaling new cooperation over Web audio access. Microsoft said today that RealNetworks and several other major Internet companies, including Yahoo, have agreed to license its Windows Media audio format. The technology has been picked up by 70 companies, according to the software giant. RealNetworks will continue to offer products in competition with Microsoft, including its RealPlayer for streaming video and audio and its Jukebox software for playing audio tracks on PCs. But it now has the right to incorporate Microsoft technology into its products. RealNetworks said it would not discuss its plans for the technology license. If the company chooses to support Windows Media in its streaming media player, it could benefit content companies, which would no longer be required to format material for both companies' players. It also would be a boon for consumers, who could access content regardless of which player they use. But such a move could hurt RealNetworks' credibility as the dominant Web streaming company. RealNetworks also could choose to support Windows Media only on its Jukebox product, which does not compete with any existing Microsoft products. You can find more information at the RealNetworks web site. The Mac Observer Spin: RealNetworks has not said that Windows Media Player would somehow replace their own home grown technology. It would be smart of the company to make it possible for people to view Windows Media content with their own viewers, whether or not there continues to be a RealAudio and RealVideo format. We have suggested in the past that RealNetworks only real hope was to license QuickTime technology from Apple. It would appear that we were wrong and that their best hope was in fact to partner with Microsoft. Of interest is what exactly has gone on behind closed doors. Did Apple negotiate with RealNetworks on this? Was QuickTime ever a candidate for licensing? Could it in fact still be a candidate? Note that Apple recently posted a remarkably self serving review of RealNetworks' web site in the computer section of iReview (despite the fact that there are lots of Mac web sites still not listed with the service). That review gave RealNEtworks 2 out of 5 stars and generally slams the company's web offering. The politics of that review could well have nuances that those outside of the parties involved could never hope to fathom. We think it would be great for both RealNetworks and Apple for the companies to collaborate on streaming technology. Facing the might of the Windows juggernaut, the companies could greatly benefit by such a collaboration. RealNetworks - Apple