Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : On2.com (ONT-AMEX) -- Ignore unavailable to you. Want to Upgrade?

To: AJ Berger who wrote (319)	2/10/2000 1:21:00 PM
From: AJ Berger	Respond to of 553

MicroSoft vs RealNetworks over CODEC could ONT be MSFT's Trojan Horse? boardwatch.com HOW MICROSOFT CAN RULE THE (STREAMING) WORLD If Microsoft wants to break Real's grip on the streaming server, all it would take is one software port, by moving the Windows Media Technology server to Linux and leaving the source code out there for easy porting. Stop laughing! I'm serious. Unfortunately, Microsoft believes in the One True OS of NT, and Linux is the devil's spawn. Since most ISP operations people believe NT is the devil's spawn and prefer to use an open version of Unix or Solaris because it's the tool they know, Microsoft has some serious issues if it expects Windows Media Technology to proliferate further. But maybe Microsoft doesn't have to do something that radical. After all, both Akamai and Sandpiper, the two leaders in terrestrial edge content distribution, are supporting NT distribution; Akamai got a lump of cash and business to boot. Microsoft also has a large posse of companies supporting Windows Media Technology through the Broadband Jumpstart Initiative. In theory, Microsoft and Real could play their game of positional chess for any number of years, with Real's market share slowly being eroded in the streaming market. Assuming Microsoft doesn't end this game quickly with a Linux/Open Source port, what can Real do to prevent attrition? Microsoft can crank another “Jumpstart Initiative” every six months or so to continue to wear away at Real's market share, so Real will eventually have to do something. Dropping its price on Real licenses and doing away with the demands for a percentage of revenue on broadcasts would be a good start. Alternatively, Real could decide to cut expenses and get out of the back end (i.e. infrastructure) of the broadcast network business, since Akamai and Sandpiper have networks that will be capable of carrying their traffic. Real can stay in the portal business and continue to derive revenues without the headaches of running infrastructure.