RSSMicrosoft Settles with Real for $761m
By Nate Mook | Published October 11, 2005, 12:52 PM
Microsoft and RealNetworks have announced a wide-ranging settlement of Real's long-standing antitrust suit, which is composed of three separate agreements valued at $761 million and resolves all disputes between the companies.
The music and games portion of the deal includes $301 million in cash and the marketing of Real's products and services. Real's Rhapsody music service will be showcased across Microsoft's Web properties, and the company's games offered through MSN Games and Xbox Live Arcade for Xbox 360.
In addition, Real will integrate MSN Search into RealPlayer and promote Windows Media technologies within Rhapsody to Go. Also, future versions of MSN Messenger will support Rhapsody to enable users to share and play music while chatting.
The antitrust agreement includes a $460 million up-front cash payment to Real "to resolve all damages claims and a series of technology licenses." Real will also receive access to all future Windows Media technologies for use in its software.
As part of the deal, Microsoft will add a feature to Windows Vista that redirects a user to Real's Web site when trying to access a Real media file without the proper software installed.
After being a key player in the U.S. Department of Justice antitrust case against Microsoft, Real filed its own lawsuit against the company in December 2003. Real alleged that Microsoft used its operating system monopoly to effectively push Real out of the media software market.
Real also claimed that Microsoft secured deals with PC makers to restrict the installation of its software, and withheld crucial details about the inner workings of Windows.
But Microsoft chairman Bill Gates and Real CEO Rob Glaser finally shook hands Tuesday and put the past behind them. The agreement would end the last major legal threat standing in Microsoft's way. The company previously settled cases with AOL, Burst, CCIA, Novell and Sun Microsystems.
The settlement, which extends to all disputes worldwide, also could affect the European Union's battle against Microsoft, says Jupiter Research senior analyst Joe Wilcox.
"Real is the last-standing, real protagonist in the European Union's antitrust case against Microsoft," noted Wilcox. "During today's media conference call, Real chief executive Rob Glasser indicated that the worldwide settlement would affect the company's position in the European antitrust case. Real will no longer be involved."
Real Networks who? I'm suing Microsoft because they got my panties in a wad.
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Good on Real Networks - well done!
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You are kidding right? Real is useless and outdated. The reason no one uses their software is because it is a memory hog and a vastly inferior product. Real is just whining with the rest of the companies that were beat out by good business decisions. Business is cut throat, and these handouts are completely absurd. I guarantee you this settlement will not help Real gain market share.
If you want to talk about bundling lets talk about all the junk you get on your computer when you install anything from Real. Half a dozen newsletters and junk emails along with other various crap is auto-installed by default, and the advanced installation makes attempts to hide the fact that you are getting junk installed. It's a bit of the pot calling the kettle black if you ask me.
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We are microsoft, resistance is futile
you will be assimilated
free marketplace is irrelevant
consumer choice is irrelevant
you will be come one with the collective
your individuality will be come ours
your technology eill become ours
resistance is futile
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nevermind... not worth it
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Microsoft just bought out REAL!
or should we say, bribed? :)
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Keep your friends close...but keep your enemies even closer.
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Real is not even a threat to MS anymore. They had a huge market share, then they screwed up, that simple.
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I am going to make a crappy version of Paint and sue MS for shipping one with Windows. Who is with me?
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You are a little late to the party with paint. :-P You should focus on a desktop security product, since that's where they are going next. haha
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I know, I just wanted a product that wouldn't offend anyone. I don't need Symfee trying to sue me.
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I love the idea! Maybe we can get the EU to help us. Could even get your own version of Windows released!
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Real Player has been junk for years. Anytime I run into one of those files I just Bink! them into Divx avi. I hate formats that force you to use their product and nothing else.
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Good idea. I'll join the effort. It's a quick way to make $761 million anyway. And we could even bundle 5 million different forms of adware and make millions off of advertisers with invasive strategies. It's a win-win.
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Sun Microsystems had a huge stockpile of cash from the dotcom bubble. They frittered it away on bad business decisions.
Novell had a monopoly on file servers. They over-charged and under-delivered. Microsoft ate their lunch.
Real had the market all to themselves, but made crappy, spyware-infested players.
No amount of Microsoft's money is going to save these companies. They've all shown a history of utter business ineptitude.
It's ridiculous that they should be propped up by Microsoft. Companies that can't give a better value to their customers than their competitors don't deserve more revenue, and, yes, even go out of business if they don't get a clue.
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Everyone claims that it's riddled with spyware.
Where is this spyware at? I installed it just to see, and it had a message center, but that was disabled with three checkboxes.
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It reports usage stats, etc. to Real by default, which some people call spyware. I just stick to calling it Adware though, since it serves a million ads anytime you use any feature.
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Sounds a lot like Google, Yahoo and MSN.
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Nope...no spyware, just softie-spread FUD.
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I would agree with that statement except for Google. They do not serve graphical ads, and there aren't even text ads in any of Google's client-side applications.
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>> As part of the deal, Microsoft will add a feature to Windows Vista that redirects a user to Real's Web site when trying to access a Real media file without the proper software installed.
Well s*** man. I'm glad there's intelligent hackers out there that will remove all the spyware and release a Real Alternative.
*cough*
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I just wish they would make an addon for WMP so I would not need RealPlayer
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So let's see - the song goes like this:
"We'll sue you for antitrust!!!! Why? Because WE want in on YOUR gravy train, you know, the one WE couldn't get to because WE were more inept than YOU were!".
This is supposed ot help consumers? We have the acknowledged kings of media player spyware and adware (not to mention pathetically incompetent programming and piss-poor media formats) joining with an OS vendor which itself is making forays into the adware market with the ads that MSN has. Together they'll steal bandwidth, promote media format mediocrity and DRM for-evah!!!
What a team!
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Right, and Michael was innocent too.
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OK, I'm going to step way out of my usual context here... I don't care what anyone says, Microsoft totally got ripped off on this one.
Let me spell this out for people (especially to Real Networks)...
RealPlayer sucks because it's poor programming, a pathetic format, and completely invasive in its behavior... RealNetworks screwed themselves over, not Media Player.
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The player has(d) tons of potential. They did screw it up, however Microsoft wouldn't settle unless Real really had something.
Of course, how it effects the EU decision may well have been the reason behind the settlement.
We may never know.
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I'd guess that it has to do with the news last week that Microsoft didn't exactly see eye-to-eye with the recording industry... they're not willing to put that kind of investment in something new (that's not even a guaranteed success), when they can leverage Real's service while settling the legal dispute between them in the process... gives them bigger bang for the buck.
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One audio stream that Real Player can handle, (to also include Winamp & several other players) but the latest WM Player 10 does not: live streaming MP3. Anyone know: why Microsoft discontinued support for this format?
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Seriously, does anyone actually use Real's formats anymore? And now that Microsoft is promoting Real, and chance on WMP getting Real-proprietary codecs? :D No? Didn't think so.
Anyway, Real lost market share because nobody wanted to use their crappy player, like others have said. I think it's pretty ridiculous that MSN Music is going to advertise Rhapsody. That's like Reebok suing Nike, and then Nike having ads for Reebok in their stores. It just doesn't happen!
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You need to check your market share numbers. Rhapsody has a pretty big share of the online music market.
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Nice. This is a bendover with a reacharound.
I didn't know there was still content being created in Real proprietary formats...
I look at this as a stealthy buyout. Hey, all you guys over on the waterfront on 1st St. in downtown, be on the lookout for the maintenance buy with a palette of banker's boxes. If you're lucky, you have a commute across 520 soon.
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I didn't know there was still content being created in Real proprietary formats..."
Been off-world for a bit???
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Dangitall. Now Real is going to survive a lot longer on MS's money. I was hoping they would just die soon. And not only do they have MS's money, but now MS is going to market them!?
That's enough to ruin my whole day =( (just joking here). Stupid Real.
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Lets Get Real
Oh well fellow Superpass subscribers, there goes our 10 free songs per month. Now that RealOne isn't hurting financially it's probably going back to songs for a nickel a note. Goodbye buffet, hello a la carte.
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"Real alleged that Microsoft used its operating system monopoly to effectively push Real out of the media software market."
No, no, I really think that had more to do with the utter crappiness of RealPlayer, but that's just me.
(And I'm only half joking.)
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Yeah, seriously, Real has no one to blame but their own crappy software.
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I would have to agree with you there.
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I have to agree...years ago, even the computer illiterate in my family didn't like RealPlayer, and said they'd never use it again.
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Not even Microsoft deserve such a cruel punishment as giving money to Real, developers of the world's worst bloatware and spyware "media player".
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real player sux. anyway real's stock is up 35% on news.
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That's because the cash that they're receiving from MS is worth more than Real's crappy bloatware.
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Back in my early dialup days with AOL(dontlaugh), the worst thing was that realplayer came bundled...awful..that was my first taste of realplayer w/ aol. 2 of the crappiest things ever.
why do i feel bad for ms? ..i do. real whinney b1tches mad because people choose to go with what's BETTER!
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