Texas Intruments gets Real
zdnet.com
found by :jeau (egroups)
January 7, 2001 8:58pm
Texas Intruments gets Real
By Richard Shim ZDNet News
LAS VEGAS--Semiconductor producer Texas Instruments Inc. may be feeling
Intel breathing down its neck, but it responded Sunday by striking a
strategic agreement with RealNetworks Inc.
Texas Instruments and RealNetworks announced that Real Player, which
consists of RealVideo and RealAudio 8, will be integrated into two of TI's
digital signaling processors (DSPs) -- the Open Multimedia Applications
Platform (OMAP) and the DA250 -- by the second quarter. Products with the
Real Player-enabled DSPs should be available later this year according to
RealNetworks representatives.
Cell phone manufacturers including Nokia, Ericsson, Sony and Handspring
have endorsed TI's OMAP processor. TI's DSPs are used in MP3 players from
Sony, RCA, Sanyo, Samsung, Toshiba and LG Electronics.
Late last year, Intel announced that it would be teaming with Analog
Devices Inc. on a new digital signal processor architecture called Micro
Signal Architecture. Intel is attempting to diversify its interests to
include products that can address the rapidly growing cell phone industry,
which currently ships nearly 10 million units per week. Analog Devices will
focus on MP3 players, digital cameras and digital subscriber line modems.
TI currently holds a 48 percent market share of the DSP market according to
research firm Forward Concepts. According to RealNetworks figures, there
are approximately 170 million users of RealPlayer, making it the No. 4
software application in the United States.
"This agreement broadens our means of distribution while it helps TI
differentiate its DSPs," said Peter Zaballos director of wireless marketing
at RealNetworks. "By going to the source, we don't have to chase down every
manufacturer and get them to put our technology in their products and they
don't have to worry about adding it. They can concentrate on adding other
features to their devices."
'Significant step' "This is a significant step for Real in its battle for
the streaming video viewers with Microsoft because TI doesn't support
Windows Media Player," said Gartner analyst P.J. McNealy. "But Real may
have only won a battle and not the war."
McNealy went on to add that because the alliance is non-exclusive, there's
nothing really holding TI or Real from teaming up with Intel and its DSP or
Microsoft and its Media Player.
"This is a good deal for both TI and Real, but TI remains agnostic," said
E.R. Cole, chief technologist of Internet Audio for TI. "It's simply a
business issue. This alliance makes us competitive because it
differentiates us."
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