Real Networks (RNWK): Internet play for the long-term. (February 1, 1999)
I believe that online video delivery is the next 'killer-app'. Let me mention a few applications of streaming video technology to substantiate my
assertion.
i.Global delivery of television and cable broadcasts
ii.Inexpensive niche-television content broadcasting / no frequency spectrum constraints, possibly limited cable capacity constraints as
data-carrying capacity of backbone is increasing tremendously while new capacity is being added at a tremendous pace
iii.Facilitation of inexpensive corporate, civil and individual information dissemination / e.g. corporate product announcements, teaching
seminars, video conferencing
RNWK is clearly the leader in the field of audio/video encoding, streaming and playback. It is the standard for the online video streaming
industry (Microsoft being the nearest competitor). The following list supports my case for RNWK, as an attractive investment opportunity.
1.Leader in video-streaming technology. Company offers end-to-end solution
2.Impending arrival of cable modems and DSL will dramatically improve the quality of online audio-video delivery (supposedly near VHS
quality)
3.The company's business model is a proven one (free players and moderately priced production tools and server software)
4.Strong rate of acceptance of online audio-video streaming and RNWK's product portfolio by the corporate world
5.Company is lining-up strong partners; At-Home (thus AT&T), Enron, Broadcast.COM
6.As more and more audio-video content is encoded using RNWK's proprietary technology, the barriers-to-entry for competitors increase
7.Microsoft, the only real competitor, is under intense scrutiny for predatory practices and is unlikely to be aggressive (it is to be noted
that Microsoft tried to acquire the company two years ago but was rebuffed by antitrust authorities)
8.Company is a very attractive acquisition target; likely acquirers SUN, AOL, Broadcast.com, Intel (gives control over its Indeo
technology applications) THIS ONE WILL ROCK...GET A PIECE OF THE ROCK AND ROLL!
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