AOL and RealNetworks Form Strategic Partnership for AOL Instant Messenger and RealPlayer

Strategic Insights -

America Online (AOL) Inc. and RealNetworks Inc. have announced a mutual distribution agreement that will make AOL Instant Messenger (AIM) and RealPlayer available to millions of new users. Under the agreement, RealNetworks will distribute a co-branded version of AIM from its website and integrate it into the RealPlayer software. This partnership aims to enhance the multimedia capabilities for AOL members, with an estimated 35 million users in the AIM Buddy List network.

Key Takeaways:

  • The agreement allows RealNetworks to distribute a co-branded version of AOL Instant Messenger from its website (www.real.com) and integrate it into the RealPlayer software.
  • The partnership aims to provide AOL members with enhanced multimedia capabilities, including the ability to send and receive links to real-time and on-demand RealAudio and RealVideo in instant messages via RealPlayer.
  • RealNetworks will also contribute to programming by allowing access to RealNetworks' streaming media Daily Briefing content through AOL My News.
  • AOL My News will offer users a one-stop, up-to-the-minute personalized source for information, including news, stock quotes, sports, and weather.
  • The agreement makes it easier for AOL members to access RealPlayer software, with the software being included in the millions of AOL 4.0 CD-ROMs to be distributed in the coming months.
  • RealNetworks will also begin bundling the AOL service software on all CD-ROM copies of its products.

Statistics:

  • RealNetworks has an existing base of 32 million registered users.
  • Over 125,000 copies of RealPlayer are downloaded every day.
  • AOL Instant Messenger has over 35 million users in its Buddy List network.
  • AOL My News has the Web's most extensive weather database, with forecasts for 6,500 cities around the world.
  • AOL My News customers can customize sports news to track over 1,150 professional and college teams.

Sources:

  • Business Wire, October 7, 1998
  • America Online Inc.
  • RealNetworks, Inc.