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Can Microsoft buy RealNetworks' silence?

malebolgia   on 14 November 2004 - 03:00 · 24 comments & 2879 views

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As the list of Microsoft adversaries receiving multimillion-dollar legal settlements grows, eyes are now turning to streaming media pioneer RealNetworks as a potential buy-off candidate.

Following deals this week with Novell and a computer industry trade group, Microsoft's top lawyer called RealNetworks the last company standing in the software giant's "litigation path" as it seeks to overturn a seminal European antitrust ruling that could force it to break out applications bundled in its Windows operating system.

RealNetworks has been a key participant in Europe's antitrust actions against Microsoft, and last December filed its own lawsuit charging Microsoft with illegally using its monopoly in desktop computer operating systems to thwart competition in the market for digital-media players. A representative for Microsoft declined to comment on settlement talks between the two companies, saying only that the RealNetworks case was still developing, with nothing new to report at this time.

News source: C|Net News.com


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Post a comment · Send to friend Comments · There are 24 additional comments
#1 PseudoRandomDragon on 14 Nov 2004 - 03:32
So what this is saying is now MS lost to the EU, they want to make deals with all the companies behind the EU?
(5 replies) #2 eminem213486 on 14 Nov 2004 - 06:24
i hope ms does buy it off. and then burn it... BYE BYE REAL U SUCK!
#2.1 MrCobra on 14 Nov 2004 - 06:49
AMEN
#2.2 ~*McoreD*~ on 14 Nov 2004 - 10:05
I second that !!
#2.3 [Pirate] on 14 Nov 2004 - 16:38
i 3rd that
#2.4 lare2 on 14 Nov 2004 - 19:41
Real =
#2.5 EduardValencia on 15 Nov 2004 - 20:36
i fourth that
#3 xpgeek on 14 Nov 2004 - 06:57
Ditto

Real is junkware, holding onto nothing but a couple file formats they won't let anyone else use.
(4 replies) #4 nexx on 14 Nov 2004 - 07:30
Real's software may be crap, but there's no law against that. There are laws against what Microsoft are doing, and for that I hope they lose.
#4.1 beatlesdb on 14 Nov 2004 - 12:48
In this case, I side with Microsoft, ofcourse Microsoft will bundle their product with their operating system, no different to mac, why would they use someone else when their product will do the job without the extra spyware.

There are too many differences between the original real player and WMP which was used purelly for internet broadcasts, if anything - real have been trying to copy WMP player by trying to make their product an all in one unit - albeit stuffed with adds and offers.

I can understand people choosing to use WMP over Real - but this has little to do with it being pre-installed and more to do with the fact that Real Player used to be great but is now CRAP - that has little to do with MS

So I guess every other audio or media player will be claiming they are also hard done my MS??
#4.2 markjensen on 15 Nov 2004 - 02:29
You cannot compare Microsoft to Apple when it comes to bundled apps.

Microsoft has been convicted of abusing their monoply position, and this puts them in a different legal category than other companies (such as Apple).

The bottom line is that Microsoft cannot legally bundle software as freely as other companies can.
#4.3 STV on 15 Nov 2004 - 05:34
@markjensen: and you find nothing wrong with that?

STV
#4.4 johnathonm on 15 Nov 2004 - 08:02
Joel Klien is one of the most revolting human beings on the face of the planet. He went after MS for one thing and one thing only, so that he and the administration would actually be able to say "hey we accomplished something". Thomas Penfield Jackson was an arrogant pompus ass who did not understand technology and ultimately was called an idiot by the appeals courts (someone please check exactly who criticized him). Lastly, Ask any american what they think of MS and what they thought when MS was convincted and most americans would not support the decision. The MS monoply was a good thing for computing and that ultimately they should have been left alone. Let the markets regulate themselves...not greedy scumbag lawyers like Klien.
(2 replies) #5 KayMan2K on 14 Nov 2004 - 08:15
Real's player software is pretty bad, but their audio/video codec is quite amazing. It was ages beyond MPEG2 and used to have a monopoly over Internet streaming content. Unfortunatly, their innovation ahs haulted and the compeition has caught up.

But didn't Windows 98 include some changes designed specifically for Real's software to underperform? Or at least could not figure out what MS did to make their player slower and Media Player faster . I remember that was a huge thing back in the day, so Real may deserve some cash.
#5.1 Slugbait on 14 Nov 2004 - 09:22
Actually, Windows98 underperformed. You might remember hundreds of benchmarks that showed a significant loss of performance of just about everything in comparison to Chicago. Even at the W2K launch, BillG pointed out that (on P6 processors...not P5 processors) W2K outperformed Win95 by about 30%, while outperforming Win98 by about 38% on identical machines.

BTW, lots of people forget that Glaser called his old company right at about the time the DOJ lawsuit got going. Of course, it was illegal for BillG or SteveB to talk to him. So Glaser testified against them...just like he threatened to do.

Then all of a sudden, money poured into the Windows Media division. Coincidence? Perhaps...

But the bottom line is that Glaser had crap, and didn't have a roadmap to make it better. He apparently thought (just like Netscape once thought) that he had a stranglehold on the market, and he ended up resting on his laurels. He obviously skipped reading The Art of War...
#5.2 ~*McoreD*~ on 14 Nov 2004 - 10:07
If MS buy Real, all I can imagine is a powerful codec of Windows Media 9 technologies and Real Media 10 technologies. Amazing !
(1 reply) #6 Daugirdas on 14 Nov 2004 - 14:49
I don't think they could buy out Real. They'd (M$) have monopoly on players/codecs (if they haven't it at the moment ) and that is prohibited by laws. Remember how much time Oracle spent trying to buy out PeopleSoft.
#6.1 AJCrowley Esq on 14 Nov 2004 - 21:31
There used to be all manner of laws to promote fair competition, prevent corporate conflicts of interest and monopolies, and prevent single corporations from becoming all powerful, but since the 80s, they've all but been dissolved. It's a shame, just one example being that now the news makers are also the news reporters, so it's nigh on impossible to count on most mainstream news outlets to give us anything close to the truth. In fact, the only worldwide news outlets that I credit with still having any integrity whatsoever are the BBC, CBC and AlJazeera (note that two of those are not privately owned, hmmm).

I wish they'd bring back the laws to ensure a level playing field in the business world, then maybe all of our stores wouldn't be multinational chain stores, all of our news wouldn't be reported by the same three companies, and we may actually have some REAL choice in this world. Of course, the problem is significantly worse here in North America, in Europe, privately owned stores still outnumber the multinationals in many areas - imagine that, being able to go into a store and buy a product that is unique to that store. It seems that here, every shopping area/mall is so nondescript and generic that you could be in absolutely any city in North America.
#7 Hills420 on 14 Nov 2004 - 15:32
everyone has a price...
#8 =NickJ= on 14 Nov 2004 - 16:37
<<removed>>

Last edited by 1798 on 14 Nov 2004 - 17:21
#9 OptiPlex on 15 Nov 2004 - 00:57
i hope Microsoft does buy out Real, that way WMP can include real codecs as well
(1 reply) #10 johnathonm on 15 Nov 2004 - 07:56
Competition by litigation. Welcome to the 21st century of computing - the American dream stifled by bitter lumbering mammoths of old, holding on for dear life as their market share fades into the night. The Sun's, Netscape’s, and RealPlayer's out there let it be known. If you can't compete or innovate, just litigate. Microsoft applications are the most widely used because they did something that most other groups didn't - they worked, easily, out of box. I remember the days of trying to buy software with OS/2, Dos, Windows, Mac etc. Incompatibilities galore. They unified the market via a common architecture, more than anyone else single-handedly ushered in the next phase of the global economy and brought the world to where it is today. If it wasn't for MS, broad based personal computing would more then likely still be a fringe element, because things would have gone the Linux route.

Lastly, and tangentially, be thankful MS is in charge - at least they do allow you an option. Try and remove something from OS X, or customize it....ha ha. Try and see how apps actually run, raw performance wise. You'll thank God every day you have your Win XP box.

A world without Microsoft is a return to closed systems (Mac) and the dark days of telnet sessions (Uni. A world where the information technology as we knew it never transpired for the home user. A world where we'd be using lynx in our telnet session rather then our IE.

To be a successful business in today' economy one must innovate. Microsoft has been constantly, the majority of it's areas doing that. Unlike Real, Sun etc. This gives them a competitive advantage unlike any other. However, the best indicator of the future is the past - look at yahoo and msn search being crushed by new entrant Google. Look at the firms that didn't innovate ...Sun, Netscape, Real - MS is just as vulnerable as all of them. Except MS has more cash to innovate.

Sorry if this was semi-incoherent, but I feel passionately about this and business. I respect MS as a case study of the American dream and as one of the most successful American firms in history.

#10.1 EduardValencia on 15 Nov 2004 - 20:39
agree
#11 Nickers on 16 Nov 2004 - 02:20
why shouldn't MS be able to bundle their software, with the operating system, they SOLD you. they dont make you use WMP, people use WMP instead of real, because it is better, in every aspect. real has the crppiest algorithyms, their compression sucks, and it always has. people that get pissed at ms because they come out with software that actually works better than their competitors. i hope ms buys them out and shuts them down. real sucks and will always suck.

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