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

To: Boplicity who wrote (1927)	3/17/1999 4:18:00 PM
From: neverenough	Read Replies (1) \| Respond to of 5843

RNWK: MICROSOFT ACKNOWLEDGES NEED FOR COMPATIBILITY WITH REALNETWORKS March 17, 1999 SYMBOL(S): RNWK ANALYST(S): POWERS, JOHN RATING: BUY Download PDF Synopsis: The following synopsis is qualified in its entirety by the more detailed information contained in the full research report, including the discussion of certain risks associated with an investment in this security contained in "Investment Risks." Key Points: We believe Microsoft (MSFT $167) will enable its new web-browser (IE5), which is being released today, to connect to RealNetworks' RealGuide. RealGuide is a directory that facilitates locating RealAudio and RealVideo clips on the Internet, much like a TV Guide for the Internet. Previously, Microsoft has sold its 10 percent share of RealNetworks in a highly-publicized falling out between the two companies. We believe that this announcement demonstrates that despite past tension, Microsoft is acknowledging the large market share of RealNetworks in the streaming multimedia market. Microsoft's Media Player is a direct competitor of RealNetworks' RealSystem G2. RealNetworks announced today that it will be significantly expanding its current version of RealGuide. This resource which can be found at realguide.real.com will have links to more than 200 RealChannels and RealStations as well as more than 1700 TV and radio stations broadcasting in RealNetworks' format and more than 3000 sites providing streaming content. Although RealGuide is not new, this upgrade represents a continued focus from RealNetworks on connecting its users to content, a theme we also saw when Excite's search engine to find streaming content was integrated into RealPlayer. Downloads of RealPlayer continue to be strong. Current download rates for RealPlayer are approximately 175,000 clients per day with the percentage of individuals choosing to purchase RealPlayer Plus ($29.99), the higher-end client, remaining consistent with historical rates at approximately 1% of client downloads. More than 55 million unique individuals have downloaded RealPlayer and the number of unduplicated home users increased more than 300% annually according to Media Metrix to 15.5 million in December 1998. We believe that business in general at RNWK continues to be healthy. Recently, RealNetworks has started to further recognize the value of advertising through its RealPlayer client. This new focus has been reflected in adding managerial depth to the advertising sales force and RNWK plans to take advantage of its large share of real estate on the desktop. Because this reorganization is fairly recent, we do not expect a significant change in advertising trends to be apparent this quarter. Although we do not believe that streaming video advertisements will increase dramatically in the near term, we believe that the arrival of broadband technologies will enable streaming video advertising to be as commonplace as television advertising. We believe this change will occur when resolution of the ad is consistently excellent, a change which will continue to take place over the next several years as broadband becomes pervasive. In our view, RealNetworks is well positioned for this move to broadband through its existing partnerships with @Home/Excite as well as AOL and Lotus. Comments or suggestions? Email your feedback to profedge@etrade.com. Note that you remain subject to the terms, conditions, and disclaimers specified in the User Agreement. © Copyright 1998 E*TRADE Securities, Inc. All Rights Reserved.

To: Boplicity who wrote (1927)	3/17/1999 4:18:00 PM
From: Technologyguy	Read Replies (1) \| Respond to of 5843

Over the long term, the fact that RNWK is in the aggregation of content business in a big way, through realguide, is the most important news of the day (and for a long time). RNWK, if they do this right, will be a destination site not just for their technology, but for their aggregated content, with huge advertising and e-commerce potential. BCST is potentially the loser because of this in the long run.

To: Boplicity who wrote (1927)	3/18/1999 1:08:00 AM
From: neverenough	Respond to of 5843

RealNetworks Deal Gets Surreal By Spencer E. Ante Staff Reporter 03/18/99 12:02 AM ET SAN FRANCISCO -- The plot has thickened. In another twist to an increasingly surreal relationship, RealNetworks (RNWK:Nasdaq) officially announced Thursday that Microsoft's (MSFT:Nasdaq) Internet Explorer 5.0 will offer its users one-click access to RealNetworks' growing stable of streaming-media programming. The announcement contradicts -- and appears to openly defy -- comments made by Microsoft Wednesday that the software colossus is not renewing its rocky relationship with RealNetworks. Microsoft's denials followed a report in The Wall Street Journal citing a "renewed collaboration" with RealNetworks. A source close to RealNetworks says Microsoft denied the relationship in an attempt to control the spin on this latest partnership between the two companies. The new version of Microsoft's Web browser, nicknamed IE 5, will enable users of the browser to access RealNetworks' content through a "RealGuide Explorer Bar." The bar will not be directly integrated into the browser, but rather will be available for free on the RealGuide Web site by downloading the new RealPlayer G2 Update 1, or by using the auto-update feature built into the RealPlayer G2, RealNetworks' streaming-media player. The RealGuide, which was revamped on March 15, acts as a sort of portal for streaming-media content. The RealGuide features links to the day's top live streaming events, as well as programming in different categories such as news, sports and money, among others. The access to RealNetworks content is hardly a default feature on IE 5. Once the RealGuide Explorer Bar is installed, users will have to configure their browsers in a multistep process in order to integrate it into IE 5, says Rob Grady, a product manager for the RealPlayer. RealNetworks is working on automating the integration process to make it easier for consumers to access RealNetworks content in future versions of IE 5. "That functionality is not exposed in IE 5 now," says Grady. "Third-party developers can't have it install automatically. But we're confident that [Microsoft] will continue to improve it." While Microsoft is gaining access to streaming content, the deal secures RealNetworks a new and powerful distribution channel. Asked if any money was changing hands in the alliance, RealNetworks spokesman Jay Wompel declined to comment on the specifics of the deal. Microsoft officials refused to discuss the integration of IE 5 and RealNetworks content. "I'm not comfortable commenting on the release of IE 5," says Tom Pilla, a spokesman for Microsoft. A spokeswoman from Waggener Edstrom, a Portland, Ore.-based public relations agency that represents Microsoft, declined to comment on the existence of any deal or relationship with RealNetworks. However, a Microsoft executive is quoted in RealNetworks' Thursday announcement. "We are pleased to see RealNetworks take advantage of the Explorer Bar feature of Internet Explorer 5," David Cole, vice president of the Web Client and Consumer Experience Division at Microsoft, is quoted as saying. "The RealGuide Explorer Bar will enable a broad range of streaming media programming choices for Internet Explorer 5 customers." The stark disagreement over the terms -- or even the mere existence -- of the deal between Microsoft and RealNetworks marks the latest chapter in a stormy relationship between the two companies, which have been battling over the streaming-media software market. RealNetworks, founded by ex-Microsoft executive Rob Glaser, controls about 85% of the streaming-software market. Microsoft, which has developed its own streaming software, bought a 10% equity stake in RealNetworks early on. But last November, Microsoft terminated the relationship, saying it would sell its stake in the company. RealNetworks CFO Paul Bialek said that over the past few months Microsoft has sold its 3.3 million shares of RealNetworks stock back into the market, increasing the company's float to 9 million shares. thestreet.com