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Technology Stocks : How high will Microsoft fly? -- Ignore unavailable to you. Want to Upgrade?


To: xbrent who wrote (46609)6/13/2000 10:15:00 PM
From: Paul K  Read Replies (1) | Respond to of 74651
 
"Software offers sites new way to make video pay"

by Monica Soto
Seattle Times technology reporter

Would you pay to see a live Internet broadcast inside Jeff Gordon's race car? Microsoft is betting on it.

The Redmond software giant plans to unveil its Digital Broadcast Management System today at the Streaming Media East conference in New York, the industry's largest gathering.

The software allows companies to charge customers for video and audio on a pay-per-view or pay-per-download basis via the Internet. In addition, 20 high-profile companies have announced their subscription to the service, including House of Blues, World Wrestling Federation and Nascar.

Microsoft charges companies an initial $495 fee, plus 10 cents per transaction for the first 1.5 million transactions. Beyond that, it doesn't assess a charge.

Stacy Quandt, an analyst with the Giga Information Group in Santa Clara, Calif., said the company is lowering the barriers for Web sites to charge for streaming media.

"I think one of the things that's held back streaming media is accessing streaming media and paying for it," Quandt said. "Microsoft is bringing this to another level. This is important."

Microsoft's announcement comes at a time when the music industry is rushing to find ways to charge consumers for content on the Internet. According to a study released last week by the Pew Internet Project, roughly 13 million Internet users have downloaded free music onto their computers.

Businesses have charged consumers for streaming video on the Internet for years, but industry observers don't discuss it because it mostly involves the $1 billion adult-entertainment industry.

"Digital media on the Web is quickly evolving from promotion to becoming the next wave of e-commerce," said Dave Fester, general manager of marketing with the Microsoft's streaming media division.

Nascar plans to use the software to offer fans live video of the inside of each driver's racing car.

Peter Zaballos, director of systems marketing for RealNetworks, Microsoft's chief streaming media rival, said his company already offers clients a way to control who has access to broadcasts. Financial service companies, for instance, brief their brokers and members of supply chains on market news using similar technology.

"It's how you manage access to broadcasting along a whole spectrum," he said. "These are all things that we've been working on quite some time."

Zaballos also said Microsoft's move to bundling its service with Windows 2000 demonstrates the companies' divergent views on where streaming media is headed. "We look at the Internet as fundamentally transforming the next medium of communications," he said. "That has nothing to do with an operating system."

seattletimes.nwsource.com