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

To: t2 who wrote (18300)	3/19/1999 12:34:00 AM
From: Ian Davidson	Respond to of 74651

From the WSJ: March 19, 1999 Microsoft Releases New Browser, Further Integrating Media Player By DAVID BANK Staff Reporter of THE WALL STREET JOURNAL REDMOND, Wash. -- Microsoft Corp. is attacking the hot market for audio and video on the Web by doing what only it can do -- tightly weave the media technology into its Windows operating system. The software company Thursday released a new version of its Internet Explorer Web browser that prominently displays a "radio toolbar" that permits computer users to tune into hundreds of radio stations around the globe, including British Broadcasting Corp., National Public Radio and House of Blues Internet Radio. The move further integrates Microsoft's Media Player into the browser, which Microsoft in turn considers to be part of Windows. Microsoft's latest integration move, a potential threat to RealNetworks Inc. of Seattle, is reminiscent of its successful efforts to catch Netscape Communications Corp. in the Web browser market. Microsoft's integration of Internet Explorer into Windows drew the attention of antitrust enforcers and helped trigger the trial now under way in Washington, D.C. The new version of Internet Explorer in some ways appears to be less integrated into Windows, but executives said IE 5.0 will replace IE 4.0 as a crucial part of Windows when computer makers begin installing an updated edition of the Windows 98 operating system this fall. But the battle front has shifted from browsers to media technologies. Just as Netscape once commanded 90% of the browser market, RealNetworks now controls about 85% of the market for media players, with more than 50 million players in distribution. And like Netscape's browser, RealNetworks's player has the potential to grow into a powerful "platform" for other software and electronic-commerce applications, especially as Web publishers make more music, video and film clips available and connection speeds rise. Yusuf Mehdi, Microsoft's director of Windows marketing, said in an interview the challenge to Microsoft posed by RealNetworks and the one once posed by Netscape are "pretty similar in a lot of respects." "Media has become a seamless part of the browsing experience," Mr. Mehdi said. "We're going to make it stunningly simple." Microsoft's integration is likely to go even deeper in the future. The company considered calling the radio feature, which appears right under the standard control buttons of the browser, its "media toolbar." Executives said the company instead decided to promote radio first to try to gain broad popularity. To compete, RealNetworks, like many other software and Web companies, this week announced its own "toolbar" for Internet Explorer to provide easier access to its services. But users will have to download RealNetworks's toolbar separately, and the software won't integrate into the browser itself. Rob Glaser, RealNetworks's chief executive officer, characterized Microsoft's offering as a "minimal subset" of his company's technology, noting that the radio toolbar features fewer stations than RealNetworks's and doesn't include features such as a sound equalizer and stereo controls. "I feel very comfortable," Mr. Glaser said. "The more visibility streaming media gets, the better we'll do." Ian