Paul, et al, did we discuss the Intel - RealNetwork pact, for Internet streaming video, etc. this week? Pat Gelsinger, Intel VP and RealNetwork CEO made a joint announcement at Palm Springs this week on the pact. Also, a pretty good ad on this was all over TV today (mostly football games, shows you what I watch). It illustrated video on a PC, I think also saying fast CPU's are required. May be an application that stretches for more CPU power.
Intel, RealNetworks strike deal
By Kurt Oeler and Michael Kanellos
Staff Writers, CNET News.com
September 16, 1998, 4:55 p.m. PT
update PALM SPRINGS, California--Intel has announced that it is
licensing video compression technology to software maker
RealNetworks, in a pact that could spur demand for its high-end
chips while further calling into question its de facto alliance with
RealNetworks rival Microsoft.
Intel software will be incorporated into the Seattle company's
upcoming streaming product, RealSystem G2, now in beta testing
and scheduled to ship within 30 days, the company said at an Intel
confab here.
Streaming software delivers audio or video content over the Web
even as it is being replayed, unlike earlier Internet multimedia
files, which had to be downloaded in their entirety before they
could be opened.
At a press conference today at the Intel Developer Forum,
RealNetworks CEO Rob Glaser and Intel vice president Pat
Gelsinger announced technology that will improve streaming video
on the Internet.
RealNetworks stock soared more than 29 percent this morning
following the announcement. RealNetworks' stock jumped as high
as 25.3750 in early trading, up from its close of 19.6250
yesterday. QUOTE SNAPSHOT
September 16, 1998, 12:59 p.m. PT
RealNetworks Inc. RNWK
24.5000 +4.8750 +24.84%
Intel Corp. INTC
85.0625 -0.8750 -1.02%
Microsoft Corp. MSFT
108.1875 -0.1250 -0.12%
> more from CNET Investor
> Investor message boards
Quotes delayed 20+ minutes
As part of the agreement, Intel "will work with RealNetworks to
promote and market the technology to Web media authors," the
companies said.
For broadcasters, the "combination of Intel Streaming Web Video
software and RealSystem G2 enables up to four times faster video
encoding (creation) than previous streaming media delivery
systems," the companies said. Intel and RealNetworks claim that
what used to require multiple computers can be done with one.
RealNetworks' RealSystem G2 technology enables high quality
audio and video on the Internet and corporate intranets. A new
music codec (coder-decoder) technology provides a high quality
sound for dial-up users, and new "postfiltering" capabilities create
smoother video images, RealNetworks said.
Licensing compression software to RealNetworks fits with Intel's
agenda of encouraging software makers to develop products that
tap the computing power of its high-end chips. Of late, consumers
haven't seen the need to buy 400- and 450-MHz Pentium II chips
because midrange processors possess all the power they need for
most desktop applications.
Simultaneously, the agreement asserts the company's independence
from the Redmond, Washington, software giant, which has recently
seemed to be the senior partner in the "Wintel" duopoly. As recent
reports of the Microsoft-DOJ antitrust case reveal, internal Intel
memos allege that Microsoft pressured Intel to drop certain
Internet-related projects that conflicted with the software giant's
own agenda.
RealNetworks has also been at odds with Microsoft. This past
summer, Glaser, a former Microsoft executive, alleged in
Congressional testimony that Microsoft's Windows Media Player
"breaks" RealNetworks' RealPlayer software.
Both Intel and Real Networks tried to play down the impact the
deal would have on Microsoft. Executives from both companies
stated that the two began to work on an improved RealNetworks
player utilizing Intel video technology almost a year ago. The exact
blend of Intel technology that is subject to the deal was actually put
together with this deal in mind.
Neither Glaser nor Intel recalled when an exact license was
signed, but Glaser indicated it took place months ago. Glaser also
said that has known about the collaboration.
Intel executives, although they would not categorically state
whether Microsoft knew about the project, or whether they have a
similar project with Microsoft, reiterated that the license was non
exclusive.
From Microsoft's standpoint, the company's relationship with Real
Networks has gone downhill since an initial spirit of cooperation
took hold in the aftermath of a 10 percent investment by the
Redmond, Washington-based software company over a year ago.
The Intel relationship will have little effect on Microsoft's own
efforts, executives said.
"Things didn't turn out the way we had planned [with Real
Networks]," said Gary Schare, lead product manager at Microsoft
for Windows media technologies. "The relationship is not exactly
a good one at this point, though we treat them as we would any
other ISV [independent software vendor].
"As time went on, it became clear they didn't want to be
compatible with Windows," he said.
Glaser also seemed to back down from his statements about
Microsoft since his senate testimony months ago. "People shouldn't
confuse a public policy issue with the practical standpoint that we
have hundreds of thousands of users."
Financial details were not disclosed but a source at Intel said that
they don't give this away for free but this deal "isn't a pennies and
dollars" deal. Instead, it is aimed at expanding users.
Intel is an investor in CNET: The Computer Network.
Kurt Oeler reported from San Francisco; Michael Kanellos
reported from Palm Springs. Paul Festa and Ben Heskett
contributed to this report.
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