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Technology Stocks : RealNetworks (NASDAQ:RNWK) -- Ignore unavailable to you. Want to Upgrade?

To: joseph w renfrow who wrote (4015)	8/4/1999 5:49:00 AM
From: soup	Read Replies (1) \| Respond to of 5843

RealNetworks in deal with Web service provider >SEATTLE, Aug 3 (Reuters) - Sandpiper Networks Inc., which helps publishers distribute content over the Internet, will add streaming media services to its network under a deal with RealNetworks Inc. to be announced Wednesday, executives said. The agreement also will allow content providers to ''rent'' RealNetworks software licenses through Sandpiper for major events, said Leo Spiegel, president and chief executive officer of Sandpiper. ''Technically we're providing a better solution, and we're creating a business model for streaming that makes sense on the 'Net,'' he said in an interview. Terms of the multiyear deal were not disclosed, but Spiegel said RealNetworks would get licensing fees and would share in a small portion of any incremental revenue generated as a result of its streaming media capability. RealNetworks is the market leader in streaming media software, which allows Internet users to get audio and video content without waiting for lengthy downloads. ''We're fairly excited about this because we see the widespread adoption of streaming media enabled by the adoption of distributed networks like what Sandpiper has put together,'' said Peter Zaballos, director of systems marketing for Seattle-based RealNetworks. Spiegel said Sandpiper also plans to support rival streaming media formats from Microsoft Corp. (Nasdaq:MSFT - news) and Apple Computer Inc. (Nasdaq:AAPL - news) on its Footprint service, a set of networks composed of more than 400 server computers around the world intended to speed Internet access and improve quality. Sandpiper, based in Thousand Oaks. Calif., was founded in 1996 and has raised more than $28 million in funding from a blue-chip list of backers including America Online Inc. (NYSE:AOL - news) , Inktomi Corp. (Nasdaq:INKT - news) and units of Times-Mirror Co., Hambrecht & Quist and BancBoston Robertson Stephens. Spiegel said the company is considering ''multiple financing alternatives'' going forward including the possibility of a public stock offering.< biz.yahoo.com This appears to be a counter to the Apple/Akamai streaming arrangement. apple.com In each case, content providers would be able to rent server capacity. With Akamai the customer pays Akamai for server capacity and nothing for the Quicktime. With Sandpiper, the customer pays for the server capacity plus a sub-license fee for (the currently dominant) RealPlayer and/or nothing for (the currently less pervasive) Quicktime or Media Player. Hmmm ...