RealNetworks got a leg up on Microsoft on Wednesday in the battle to control streaming media over the Web. Help came from an unlikely ally: Intel has licensed a new video technology designed to improve the performance of RealNetworks software for creating and viewing Internet video.
RealNetworks (RNWK) and Intel (INTC) announced the collaboration at a news conference at the Intel Developer Forum in Palm Springs, California.
The RealSystem G2 streaming product line will incorporate new Intel video technology -- called Intel Streaming Web Video -- which optimizes video playback on Intel-based PCs. A beta version will be available within 30 days, the companies announced.
"It's an order of 4x improvement to deliver superior quality videostreams," said Pat Gelsinger, vice president and general manager of Intel's business platform group.
"What used to take four machines is now possible on one single machine," added RealNetworks CEO Rob Glaser.
Financial terms of the nonexclusive agreement were not disclosed.
The RealNetworks software represents Intel's first deployment of what webcasters say is a promising technology.
It adds scalability to RealNetworks technology, which lets its video player adapt in real time to fluctuations in connection speed. Using a combination of compression improvements and post-processing technology, the Streaming Web Video software also improves low bit-rate video quality.
Intel's improved "error concealment" allows a videostream to recover smoothly from Internet packet loss. The technology fills gaps between delayed video frames using estimation techniques to create intermediate frames on the fly.
"If they can deliver that, it's a tremendous feature," said Gary Brickman, executive producer of TechWeb Today, a video channel preset into the G2 player's default interface.
Compared to current G2 beta products, "it is really an overwhelming and impressive and visible difference," said Carol Barrett, a multimedia marketing manager for Intel. "It uses processor power to create sharper images and smoother videos by creating intermediate frames on the client."
There was additional good news for RealNetworks, which is battling Microsoft to become the dominant media software on the Web: Intel has also agreed to co-market and promote RealSystem to developers of Web-based video content.
Wednesday's announcement gives RealNetworks the upper hand in the media-player battle, said Thomas Edwards, president of The Sync, a webcasting company that uses streaming media to broadcast audio and video on the Net.
"It's similar to [the] Microsoft vs. Netscape [battle for Web browser market share]," said Edwards. "This is just one of the shocks in that battle, and it is a good shock for RealNetworks.
"It's definitely a very interesting technology. This is going to be something which will really differentiate the G2 player from NetShow," said Edwards. "I think it's kind of a coup that RealNetworks is able to partner with Intel on this technology."
Microsoft, Intel's longtime ally, is trying to catch up with RealNetworks in developing software to deliver TV-quality audio and video over the Net.
There is nothing in the RealNetworks deal to prevent Intel from making a similar agreement with Microsoft, which owns 10 percent of RealNetworks.
Intel's Gelsinger declined to say whether any similar agreements were in the making. He said Intel's technology-sharing agreement with Microsoft does not include the RealSystem G2 technology.
Microsoft said the new partnership wouldn't give RealNetworks a significant technological edge.
"It certainly improves the performance of [RealNetworks G2 technology] over where they are already, but we think we have very competitive offerings [as it is], and we're going to keep working on it," said Microsoft spokesman Adam Sohn. In terms of getting faster frame rates over slower connections, he said Microsoft "is already there."
Though he wouldn't comment on whether Microsoft and Intel are working on a similar agreement to allow the use of the technology in Windows Media Player, Sohn said both companies took pains to explain that it was a nonexclusive arrangement. "We have great partnerships with companies like Intel," he added.
If Intel were to license the same technology to Microsoft, RealNetworks will have had a head start, and "over the long term, at least they have parity [with Microsoft technology]," Edwards added.
RealNetworks' Glaser told a Senate committee in July that Microsoft might deliberately have prevented RealSystem G2 software from working properly on Windows, forcing computer users to use Microsoft's competing Media Player. Microsoft vehemently denied the accusation. In the end, Edwards pointed out that technical mistakes by both companies contributed to the problem.
"One of RealNetworks' biggest challenges right now is that they are not the default technology [installed on PCs]," Edwards said. "Microsoft's [Windows Media Player software] has a huge advantage.... Whatever you say about G2, it's still a plug-in."
