20-Sep-99

Microsoftís WebTV Networks Gets Real

In what may signal the end of the Internet streaming wars, Microsoftís WebTV Networks unit has licensed the technology of its fierce competitor, RealNetworks, for use on the TV-centric Internet service. Microsoft has been competing with its own Windows Media technology against RealNetworks G2 streaming media system. But with RealNetworksí solid base of 70 million registered users representing an estimated 85 percent of the streaming media market, WebTV could no longer ignore the domination of its competitor. Under the deal, RealNetworks will provide WebTV Networks with technologies enabling an upgrade of existing WebTV devices to support RealNetworksí RealAudio G2 format. The upgrade is expected to be available to WebTVís approximately 800,000 subscribers later in 1999. In addition, RealNetworks will develop a new RealPlayer G2 for the Windows CE platform, allowing WebTV to incorporate RealPlayer G2 support in future Internet appliances that work with the service.