Streaming Media Makes Waves

As Fall Internet World 2001 and Streaming Media East 2001 opened in New York City, perennial rivals Microsoft and Real Networks hit the airwaves with technologies that should increase demand for bandwidth in the future.

by Clint Boulton of internetnews.com [December 13, 2001]

NEW YORK—Microsoft Corp. Tuesday wasted little time making some noise at the Streaming Media East 2001 show when it demonstrated its new Windows Media platform, a product whose key striking feature is that it kills the "infamous buffer" snag that irks streaming media lovers.

The Redmond, Wash.-based software giant aired its new wares at a high-tech gala in the Jacob K. Javits Convention Center in New York City, where Fall Internet World 2001 and Streaming Media East 2001 are being held concurrently this week.

In a keynote address geared to hype the revamped platform, code-named "Corona," Will Poole, Microsoft's vice president of the Windows Digital Media Division, discussed how Windows media will kickstart the Web services market. While Poole's talk of the futuristic ability to have digital media such as new music releases streamed from company servers to .NET-enabled servers powering home PCs (and, believe it or not, streamed to .NET-served cars), was interesting, it was the demonstrations of more current, practical solutions that caught the audience's collective eye.

Poole, together with the division's general manager, Dave Fester, showed how "Corona" improves streaming media delivery vis-à-vis Fast Stream, a feature that delivers ready-to-play-at-the-push-of-a-button, always-on streaming. Poole called the new digital media platform an incarnation of "third-generation streaming media" technology, where unpleasant pauses in play are eradicated.

The cornerstone of the FastStream presentation was Microsoft's partnership with FYE, the giant entertainment retailer for which the software firm is powering its entertainment kiosks. But unlike sampler kiosks you'll find at other retailers where a limited amount of tracks are offered, FYE uses Microsoft's servers to give listeners samples of every track available in the store.

Fester wowed the audience by showing how users can select music, sample it, and make a purchase right at the kiosk with Microsoft .NET's heavily-debated PassPort payment system. In an extension of this, Fester then showed how a consumer can use a home PC to get additional "if you liked this, you may enjoy this" recommendations by visiting FYE's website, creating a MyFYE account to be apprised of related music. He also showed how someone can instant message a track to a friend using .NET Alerts and Windows Messenger.

And, while this presentation was sure to intrigue music-loving consumers, Poole said his company is also working hard to push its third-generation streaming works for the enterprise. He cited a case where a salesman can go on the road to close a huge deal and benefit from receiving up-to-date analyses from the company's intranet, which would be powered, of course, by Microsoft's .NET servers. The idea is that the salesman can get fresh data to close the sale.

To that enterprise end, Poole also showed how Radio Shack is using Microsoft's Windows Media to train its employees.

But the success of so-called third-generation streaming is contingent on adoption of broadband access, which, according to a study released Tuesday by Nielsen/ Netratings, may not be a problem. The survey found that the at-home broadband audience surpassed 21 million in November, growing 90 percent year-over-year. Broadband fueled 94 percent growth in the streaming audience, reaching 40.7 million surfers. But most importantly, the research firm sees dollar signs in those figures.

"Last year, broadband surfers spent 67 percent more dollars online each month than narrowband surfers, said T.S. Kelly, director and principal analyst, NetRatings. "The continued healthy growth of the broadband population bodes well for ecommerce."

In a later presentation, Poole and Fester demonstrated how "Corona" makes delivery of home-theater-like audio and video quality to broadband PC users possible with the help of brand new audio and video codecs, including the new WMA Professional—the first codec to enable Web-based delivery of 5.1 multi-channel surround sound.

But what drives the new Windows Media platform? A product from the .NET well, no less. Microsoft said it created the release of a new streaming media engine, currently slated for beta 3 testing, to power Corona. It's called Windows Media Services in Windows .NET Server.

Pending offerings from the Corona platform include new versions of Windows Media Player, Windows Media audio and video codecs, and Windows Media Encoder, as well as a new Windows Media Software Development Kit—all scheduled to be available for beta testing early next year.

Microsoft was also pleased to announce semiconductor allies for its latest Windows media endeavor; DVD chip manufacturers Cirrus Logic, ESS Technology, LSI Logic, STMicroelectronics, and Zoran will support Windows Media Audio and Video technology. This means that within the next year, DVD players containing these chips will enable consumers to play back 22 hours of music from a single CD.

A real rival
In digital media rival news, RealNetworks Inc. Monday announced its full support of the MPEG-4 standard, which will be included in the next release of the firm's RealSystem. MPEG-4, the logical step up from MP3 technology, comprises audio and video technologies that condense large digital files into smaller ones that can be easily transferred via the Web.

RealNetworks' embrace of MPEG-4 is a huge win for the Moving Pictures Expert Group (MPEG). Sun Microsystems Inc. has already announced its support for the standard, which is seen as a technology that will eventually eclipse MP3. Along with electronics device maker Philips, Sun will promote and develop MPEG-4 technology for broadband and wireless markets.

On Wednesday, RealNetworks scored a bit of a coup over Microsoft when Houston's Compaq Computer Corp. pledged to ship its upcoming Presario PCs with the newfangled RealOne Player as the default product.

Compaq will also push for customers to sign up as members of RealNetworks' subscription services (RealOne Membership and RealOne Music) through a RealOne icon on the desktop, a hot link to a co-branded Compaq and RealOne website from the Compaq Internet Keyboard, and other online and offline promotion vehicles. RealOne Membership and RealOne Music offer Compaq consumers access content from ABCNews.com, CBS, CNN, FOX Sports, Warner Music Group, EMI, Bertelsmann, and more.

"Compaq is committed to providing consumers with anytime, anywhere access to entertainment and information, and we are pleased to expand our Internet offerings to include RealNetworks, which has long been a leader in connecting consumers to valuable Web content," said Bob Lund, Vice President of Business Development, Compaq Computer Corporation. "We believe RealOne offers a premier media experience to our customers."

The RealOne service and media player launched last week. RealOne Music, powered by the MusicNet platform, became the second online music subscription service to launch after Listen.com's Rhapsody. It is priced at $9.95 a month and offers 100 streams and 100 downloads per month, with over 75,000 tracks to pick from. RealOne membership with access to premium channels is $9.95 per month. RealOne Gold Membership, which offers access to both premium content and 125 music downloads and 125 music streams, is priced at $19.95.

Compaq Presario desktop and notebook PCs will begin shipping with RealOne as the default media player in early 2002.

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