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REALNETWORKS READIES MULTICHANNEL CODEC

RealNetworks said it was rolling out RealPlayer 10 software that features a multichannel codec and couples support for MPEG-4 compression with the national debut of an online music store.

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In replacing RealPlayer 9, which was introduced in 2002, RealNetworks said it also was providing more sweeping support for video with a 30% improvement in compression quality. That enables delivery of HD programming at 5 Mbps per sec. vs. 18-20 Mbps per sec. with MPEG-2. DVD-quality video can be delivered at 1 mbps per sec., it said.

“This allows for delivery of higher quality content at a lower bit rate, which for either last-mile providers or people looking to deliver content to devices can be really important because you're moving closer to the higher quality market,” said Mktg. & Business Development Dir. Sherman Griffen.

The RealPlayer 10 software, consumes 8 MB, 200 kb of which is occupied by the codec. Coinciding with the delivery of the new Real Player software will be the release of Real Audio 10, which in addition to MPEG-4 compression contains supports for AAC encoding that has become a hallmark of digital audio players. It also will have support for all streaming formats including MP3, Windows Media and Quick Time. RealPlayer 10 also features LivePause and PerfectPlay options that allow users to pause live audio streams and fast-forward and rewind within live and on- demand streams.

“It’s [AAC is] widely distributed and pretty much every chip manufacturer has an AAC implementation done or on the shelf and ready to pull out and go with,” Griffen said. “If you look out and see who is distributing AAC, you'll see there is momentum for using this codec.”

Besides AAC support, RealPlayer 10 offers multichannel surround sound with support for 50 different codecs, but not Dolby Digital or DTS, Griffen said. While RealNetworks will consider adding Dolby Digital and DTS support in the future, for now it’s targeting a different market, he said.

“From our perspective, we're going after different markets, and ours has to do with content delivered via IP via streaming or download to a PC or network connection devices in the home,” Griffen said. “Dolby and DTS are focused on different markets,” including home theater.

The delivery of content will be key to RealNetworks’ new Real Music Store, which is based on RealPlayer 10 and will charge 99? to download songs and $9.99 for an album, the same fees as Apple Computer’s iTunes and myriad other services. A first download from the music store will be priced at 10? for the next 10 days. Real introduced the download service in Nov. as MusicNow, which initially was exclusive to Best Buy. But with the introduction of the Real Music Store, RealNetworks will widen distribution and make the service available through a variety of products including 7 of PalmOne’s handheld PCs with the Handspring Treo 600. Other devices that will integrate the service include a Creative Labs hard drive-based Zen Xtra digital audio device and mobile phones. With the expansion of the music store, RealNetworks adds its Helix 10 DRM software for secure downloads that was released to content developers 13 months ago. RealNetworks has signed licensing agreements with a range of cellphone suppliers in recent months for its RealOne for mMode software. They include AT&T Wireless for video and Nokia for its model 3650 cellphones and N-Gage deck. The mMode service costs $4.95 per month plus usage fees.

The Real Music Store also will complement the RealNetworks Rhapsody service, at $9.95 per month for unlimited streaming access to a database of more than 400,000 songs. In Nov., Comcast agreed to distribute Rhapsody with its cable modem service. The RealNetworks agreement gives Comcast’s cable modem subscribers a one-month free trial of the service. RealNetworks has used Intel’s Universal Plug-&-Play technology to build support for home networking into Rhapsody. Rhapsody has more than 250,000 paying subscribers, RealNetworks has said.

With the expansion of its music service, RealNetworks also signed a 7-year licensing agreement with Rolling Stone to take over operations of the magazine’s rollingstone.com Web site. The site will add RealPlayer 10 capability and support for the music store and Rhapsody.