Intel Licenses Video Compression Software to RealNetworks, Threatening PC Industry Status Quo

Strategic Insights -

Intel Corp. will license its advanced video compression software to RealNetworks Inc., a Seattle-based developer of programs that deliver audio and video over the Internet. This deal marks a significant shift in the cooperative relationship between Intel and Microsoft Corp., as Intel is sharing its technology with a Microsoft competitor in a crucial area for the commercialization of the Internet. RealNetworks reports that about 30 million people use its software, and the deal is seen as a potential threat to the PC industry's current direction. Meanwhile, a Utah state group will begin handing over Internet filtering records to a critic who successfully fought to have the files declared public documents. The records are expected to reveal which Internet destinations students and teachers were prevented from reaching by SmartFilter, a software program used by many Utah schools.

Key Takeaways:

  • Intel will license its advanced video compression software to RealNetworks, a Microsoft competitor, marking a significant shift in the cooperative relationship between Intel and Microsoft.
  • The deal is seen as further evidence of growing cracks in the cooperative relationship between Intel and Microsoft, which has long dictated the direction of the personal computer industry.
  • RealNetworks reports that about 30 million people use its software, demonstrating the growing demand for Internet-based services.
  • A Utah state group will begin handing over Internet filtering records to a critic who successfully fought to have the files declared public documents.
  • The records are expected to reveal which Internet destinations students and teachers were prevented from reaching by SmartFilter, a software program used by many Utah schools.
  • Apple Computer has delayed shipping its most sophisticated desktop personal computer, the 366-megahertz Power Macintosh, and is experiencing trouble meeting demand on other high-powered machines.
  • The delay comes amid brisk demand for Apple's products, especially the new $1,299 iMac.

Statistics:

  • About 30 million people use RealNetworks' software (according to RealNetworks).
  • Intel will license its advanced video compression software to RealNetworks (no specific number mentioned).
  • Apple has delayed shipping its 366-megahertz Power Macintosh (August).
  • Brisk demand for Apple's products, especially the new $1,299 iMac (no specific numbers mentioned).

Sources:

  • Reuters (Intel to license video compression software to RealNetworks, August 22)
  • CNET News.com (Apple delays shipping of high-end computer model, August 22)
  • Deseret News (Utah group begins handing over Internet filtering records, August 25)