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Technology Stocks : RealNetworks (NASDAQ:RNWK)

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To: B. A. Marlow who wrote (2771)4/19/1999 7:47:00 PM
From: soup  Read Replies (1) of 5843
 
Apple's Debuts Quicktime 4.

apple.com

Mac and Windows players available for download.

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Apple Introduces QuickTime Streaming Server Software - The First Open Server for Internet Streaming

Open Source and Mac OS X Server Versions Available; Leading Vendors Bring QuickTime-Compatible Servers To Market

apple.com

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Apple, Adobe vie for desktop video.

>"The 60 million Web sites out there are going to be 60 million broadcast stations," and access to video-editing solutions will help to drive that convergence, Baum said.<

macweek.zdnet.com

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Also reposted from SI/AAPL:

>Personally, I think the business model for Quicktime for Apple is
very very similar to the business model for Java for Sun.

Quicktime will generate some revenue for Apple, via consumer and
development license sales. However, the real story is about
standards.

The more people associate QT with the standard in multimedia, the
more credibility Apple has in that market. That translates into
queries and sales of hardware, which is Apple's bread and butter.
Just like Java and Sun servers. You don't need Solaris to serve
Java, but for many corporate buyers, Sun = Java = Internet. So
they buy Sun.

Apple wants people to think Apple = Quicktime = Multimedia. So if
they are doing multimedia work, they buy Apple. This could also
eventually translate into buying Apple hardware for servers.

This business model is 100% different than RealNetworks, who
makes all their money off license revenue for their streaming
server, players, etc.

**In the end, Apple's business model could really torque RNWK,
because for Apple, the streaming server and player are just loss
leaders. They are ancillary revenue to the positioning of the whole
company.**<

exchange2000.com

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I normally post on the Apple thread but have been lurking here. Have also noticed that RNWK's market cap had exceeded Apple's.

I thought this excessive since the market apparently attaches no value to Apple's Quicktime. (AAPL, net of cash, trades at about 10x forward earnings.)

I also find it odd that noone on this thread thought it worthwhile to post news about a competing product.

Comments?
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