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Technology Stocks : RealNetworks (NASDAQ:RNWK)

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To: Doug (Htfd,CT) who wrote (267)	2/26/1998 4:50:00 AM
From: Roger Bass	Read Replies (1) of 5843

Doug, there is no difference between streaming and non-streaming media as far as bandwidth goes (though there are some issues there as regards the way the PC or other box works). The issue is the compression algorithm used. Your understanding of 'recycling' of backbone bandwidth is, in general, incorrect. Think about it: on the net people are usually viewing/listening to different things at different times, so how could you avoid using additional bandwidth for each ? Multi-cast is a technology that is being deployed to ease this for net-casts that will in fact be watched by many people, but it still implies cacheing somewhere else in the network (albeit perhaps briefly) for anything which is not to be re-transmitted, so it's no panacea. The bottom line is that people are only beginning to deal with the issues of deploying mass market broadband services now, the technologies are evolving to meet new needs, and RNWK is a living, innovative company that has business relationships in place to respond to them. A standard that was designed with no thought of the needs of this kind of application is not serious competition, IMHO.

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