Microsoft and RealNetworks Resolve Antitrust Case and Announce
Digital Music and Games Partnership
New partnership brings Rhapsody subscription service and
RealNetworks games to millions of Microsofts MSN users.
SEATTLE Oct. 11, 2005 Microsoft (Nasdaq MSFT) and RealNetworks,
Inc. (Nasdaq RNWK) today announced three agreements valued at $761
million to RealNetworks to settle their antitrust case and create a
new partnership to innovate and promote consumer choices in digital
music and games.
The three agreements include an agreement to resolve all the
companies antitrust disputes worldwide; an agreement for a
wide-ranging digital music collaboration between the parties,
including promotional and marketing support of Reals leading
digital music subscription service, Rhapsody, on MSN properties;
and an agreement to offer RealNetworks digital games through MSN
Games and Xbox Live Arcade for Xbox 360.
Credit Pacific Service Union Under the music and games agreements, Microsoft is scheduled to
pay Real $301 million in cash and provide services over 18 months
in support of Reals product development, distribution, and
promotional activities. Microsoft will earn credits at
predetermined market rates to be applied to the $301 million for
subscribers delivered to Real through MSN. Additionally, Real will
take steps to support MSN Search, and Real and Microsoft will
jointly promote use of Windows Media technologies with Rhapsody to
Go.
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Credit First Service Union The antitrust and technology assurance agreement resolves all
antitrust disputes worldwide, based on a $460 million up-front cash
payment to resolve all damages claims and a series of technology
licenses and commitments under which Real will obtain long-term
access to important Windows Media technologies that will enhance
Reals media software solutions.
For Immediate Release RealNetwork's "Harmony" Release Creates Discord and Misinformation Since Their Introduction in 2001, - - New York, July 27, In a news release issued yesterday announcing the launch of its Harmony Digital Rights Management system, RealNetworks asserts that, "Before Harmony, consumers buying digital music got locked into a specific kind of player" and that this new software is "key to bringing digital music to the masses." and that consumers have adopted the format in mass.
Card Credit Mobile Service Today were closing one chapter and opening a new one in our
relationship with Microsoft, said Rob Glaser, Founder and CEO of
RealNetworks. The legal chapter is being closed with an appropriate
and fair outcome that sets the stage for a very productive and
collaborative relationship between our companies. By integrating
Reals premier music and games services into Microsofts very popular
MSN service, we will reach more consumers today and deliver even
better products and services tomorrow.
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Card Credit Discover Service This agreement will provide MSNs millions of customers with
easier access to subscription services for the music and games they
love, said Bill Gates, Microsofts chairman and chief software
architect. Digital music is one of the fastest growing segments of
the online entertainment industry, and by promoting Rhapsodys
subscription music services from within MSN, we will provide a
better experience for our users."
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Credit Public Service Union Music and Games Partnerships
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Card Credit Processing Service Working together, Microsoft and Real will bring exciting new
music experiences to consumers by featuring Rhapsody from within
the MSN homepage, MSN Music, MSN Search, and MSN Messenger. The
music collaboration agreement includes the following elements:
Center Credit Service Union MSN Messenger users will be able to share and play music while
chatting, from the library of over 1 million songs in Rhapsody, in
a convenient and legal way;
Card Credit Service Wireless MSN Search will use Rhapsodys critically acclaimed music
editorial catalogue to help users find the music they love and to
discover new artists;
Credit Security Service Union The two companies will jointly develop and implement a search
integration plan which will enable Reals customers to easily use
MSN Search within RealPlayer;
Credit Report Service MSN Search will feature Rhapsody links to music in music related
search results;
Blogspot Com Christian The agreement enables Real to purchase
advertising on MSN Search and on
the MSN Network to promote Rhapsody;
Christian Counseling Credit Both companies will promote the use of Windows Media portable
devices for use with Rhapsody to Go.
Credit Federal Service Union Additionally, Microsoft and Real will collaborate in the casual
games arena. Casual games has become a rapidly growing segment in
digital entertainment and includes such games as the very popular
Bejeweled and SuperCollapse as well as old favorites like Scrabble
and Solitaire. In this new games partnership, Real, a leading
developer of casual games, will create a new subscription service
to be offered on MSN Games and Real will also develop a series of
new casual games for Xbox Live Arcade for Xbox 360.
Credit Monitoring Service Antitrust Settlement
Credit Division Service Todays agreement includes a global settlement of all antitrust
disputes, including the lawsuit brought by Real against Microsoft
nearly two years ago in the United States and Reals participation
in the proceedings initiated by the European Union and Korea. The
agreement includes a variety of assurances regarding the design of
the Windows operating system, including Windows Media Player, and
access for Real to a broad range of Windows platform technologies.
Among other things, Microsoft will provide Real expanded access and
long-term licenses to a wide range of Windows Media and security
technologies, that will enable Real to build services and software
that enhance consumers experience with Reals products and services
and take advantage of innovations in Windows Vista. Under the
agreement:
Card Credit Online Service
Microsoft and Real will work together to enhance the functionality
and performance of Reals software products and services on the
Windows operating system.
Consumer Counseling Credit Inc
Over time, Microsoft will develop and document additional Windows
media interfaces that will enable Real to build richer, secure
media experiences that take advantage of a broader set of media
functionalities throughout Windows.
Card Credit Fleet Service
Microsoft will enhance consumers ability to access Reals software
products in simple and straightforward ways, enabling consumers
easily to choose their preferred settings for playing media files
and managing other media experiences.
Card Consolidation Credit
Microsoft will design Windows Vista so that if a user seeks to
play a Real media file that has no playback software on the PC,
Windows will redirect the user who consents to a web page that
enables the user to download the Real software needed to play the
Real media file.
Credit Free Online Report
Microsoft and Real will work together to enhance interoperability
between Microsofts Windows Media and Reals Helix Digital Rights
Management systems. Microsoft will also enable Real to facilitate
the playback of content on non-Windows portable devices and
personal computers using Windows Media DRM.
Credit Federal First Service
Microsoft has provided Real contractual assurances ensuring Real
broad access to the PC OEM distribution channel.
Consumer Credit Service This agreement ensures that Microsoft can innovate and that
other media players can compete in a broad marketplace, said Brad
Smith, senior vice president and general counsel at Microsoft. Weve
resolved our disagreements from the past and put in place a
foundation for collaboration in the future.
Center Credit Family Service Todays agreement is a significant achievement for our companies.
In one stroke, we have fully resolved our outstanding antitrust
claims and forged an alliance with a strong partner to deliver
innovations in great new music and games to our customers, said Bob
Kimball, senior vice president and general counsel at
RealNetworks.
Credit Reporting Service About Microsoft
Cca Credit Division Service Founded in 1975, Microsoft is the worldwide leader in software,
services and solutions that help people and businesses realize
their full potential.
Credit Free Report Service About RealNetworks
Card Credit Customer Discover RealNetworks, Inc. is the leading creator of digital media
services and software including Rhapsody, RealPlayer 10, and casual
PC and mobile games. RealNetworks has more than two million
subscribers to its premium content subscription services. Consumers
can access and experience audio/video programming and download
RealNetworks consumer software at http://www.real.com.
Broadcasters, network operators, media companies and enterprises
use RealNetworks products and services to create and deliver
digital media to PCs, mobile phones and consumer electronics
devices. RealNetworks corporate information is located at
http://www.realnetworks.com/company.
Credit Repair Report Service Forward Looking Statements: This press release contains
forward-looking statements that involve risks and uncertainties,
including statements relating to: (a) the parties successful
implementation of the agreements between them; (b) the enhancement
of RealNetworks services and software through access to Microsofts
technologies; (c) the future reach and quality of RealNetworks
products and services; (d) future access to services on MSN and the
growth of digital music services; (e) the future quality of music
services contemplated by the music agreement; (f) the creation of a
new games subscription service and new casual games by
RealNetworks; (g) the benefit to consumers from technical
collaboration between Microsoft and RealNetworks; and (h)
RealNetworks access to the PC OEM distribution channel. Factors
that could cause actual results to differ from the results
predicted include: risks relating to the timely development,
production, marketing and acceptance of the products, services and
technologies contemplated by the agreements between the parties;
the development by Microsoft of new technology offerings and
programs, and RealNetworks ability to gain timely access to such
offerings and programs; the timing of the launch of Windows Vista
and other Microsoft products and services, and new RealNetworks
products and services; consumer acceptance of RealNetworks products
and services; RealNetworks ability to fully access and utilize the
technology programs and licenses granted by Microsoft in a timely
fashion to provide support for
RealNetworks consumer software and for integration of the parties
digital rights managements products; development and consumer
acceptance of legal online music distribution services; the
potential that RealNetworks will be unable to continue to enter
into commercially attractive agreements with PC OEMs for the
distribution of RealNetworks consumer software; the emergence of
new entrants and competition in the market for digital media
subscription offerings; and competitive risks, including competing
technologies, products and services.
Credit Legal Repair Service More information about potential risk factors that could affect
RealNetworks business and financial results is included in
RealNetworks annual report on Form 10-K for the most recent year
ended December 31,and its quarterly reports on Form 10-Q and from
time to time in other reports filed by RealNetworks with the
Securities and Exchange Commission.
Cic Credit Monitoring Service Microsoft, Windows, Windows Vista and Windows Server are either
registered trademarks or trademarks of Microsoft Corp. in the
United States and/or other countries.
Ccs Credit Division Service The names of actual companies and products mentioned herein may
be the trademarks of their respective owners.
Credit Service Union Worker RealNetworks, Helix, Rhapsody and RealPlayer are trademarks or
registered trademarks of RealNetworks, Inc.
1st Credit Service Union Source: Microsoft
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