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To: Sequoia Holdings who wrote (3464)	5/1/1999 3:33:00 AM
From: chris431	Respond to of 18366

Why wouldn't RNWK go with EPAC? I do not closely follow RNWK but I will speculate that at the moment they are most concerned about distribution, not necessarily setting the standards for the format, compression, etc. (although of course they do have their own RA format, I haven't seen any news that suggests they are pushing it as the format to distribute other than as a streaming media). The recent deal with IBM suggests that RNWK has neither selected a single format nor excluded formats for which they will support. RNWK's incorporation of IBM's EMMS is a good example. It appears to be a neutral distribution layer between the source (ie. distributor who wants to manage what is being bought) and the purchaser. From RNWK press release, "EMMS is based on open architecture and is capable of managing and distributing multiple types of media content over multiple networks. IBM has designed EMMS to be interoperable so it can evolve over time to integrate technology advances in music compression, encryption and formatting." IMHO, RNWK is already a leader in on-line distribution but not necessarily a force in dictating what compression format that media will be (besides their streaming media which isn't relevant in this context). Yes, they bought Xing. But, within the big picture of RNWK, becoming the top distributor (for which they are positioned) is much more important than sticking with one format as you suggest (MP3). Rather they are likely to support the formats which they think will allow them to remain a leader in distribution. By only supporting one format, RNWK would be jeopardizing what I think is their primary goal....distribution. This seems even more apparent by reading the already posted article concerning Monday's RNWK announcement. It states, "RealNetworks on Monday is expected to jump into the world of MP3 and other digital music download formats...." For convenience I have posted a link to that article below: news.com Chris