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RealNetworksApril 15th, 2000
RealNetworksApril 15th, 2000
Chantal Yearwood
Luiz Gustavo Saito
Makoto Yokoo
Paulo Passoni
3
Our message is…
“RealNetworks should combine its technological
expertise and content aggregation power with
strategic alliances to enhance the ecosystem
model and consolidate its presence in the growing
streaming media worldwide”
5
Agenda
What business are we in?What business are we in?1
Who are the competitors?Who are the competitors?2
What foreign markets to enter? How?What foreign markets to enter? How?3
What Human and Financial Resources will be needed?What Human and Financial Resources will be needed?4
What’s in the future of this business?What’s in the future of this business?5
Q & AQ & A6
6
Agenda
What business are we in?What business are we in?1
Who are the competitors?Who are the competitors?2
What foreign markets to enter? How?What foreign markets to enter? How?3
What Human and Financial Resources will be needed?What Human and Financial Resources will be needed?4
What’s in the future of this business?What’s in the future of this business?5
Q & AQ & A6
7
The Streaming ChainThe Streaming Chain
Broadband
56k
28-36K
14K
Source: Nielsen/NetRatings
3.9
5.4
7
8.8
1999 2000 2001 2002
CAGR:31%
US
$ bn
Source: IDC
Media Media Companies Companies
ServersServers
Streaming Streaming server server
softwaresoftware
Internet infrastructure
Streams & Advertising
Client softwareand/or
Organizer
End Consumer
Content Content producing producing
will result in will result in conflict with conflict with
media media companiescompanies
Microsoft Microsoft Platform WarPlatform War
Linux, SunLinux, Sun
Rich-Media trend
Internet will mimic real
life
Different Different music music
formats formats
Platform Platform warwar
8
Ecosystem: Ecosystem: highly leveraged by allianceshighly leveraged by alliances
Consumer Software
Content aggregation
Advertising
Narrow and broadband software infrastructure
Real Broadcast Network Real Broadcast Network deal with DoubleClick. deal with DoubleClick. Examples:Examples: Buick, Gap, Buick, Gap,
Intel, and 800.comIntel, and 800.com
•Music: Universal Music Group, BMG and Sony•Aggregators: Yahoo•Content providers: CNN, ESPN, ABC, FoxNews and AOL•E-commerce: amazon.com, Cdnow.com, NetRadio.com and Spinner.com
•Infrastructure AT&T, Exite@Home, Cable and Wireless, Enron, Deutsche Telekom, GTE and Sprint•Application Tools: 150 soft vendors such as Intel, SGI, Sun, Lotus and Macromedia
Non-proprietary Juke box
vs. proprietary RealPlayer technology
Non-proprietary Juke box
vs. proprietary RealPlayer technology
9
Core Business:Core Business: Streaming media Catalyst Streaming media Catalyst
Software/Streaming technology
development to the end
consumer
Content aggregation,
NOT creation
Advertising revenues as a result of increasing
traffic
The Ecosystem concept is key to The Ecosystem concept is key to the the Business ModelBusiness Model
• 350k hours of streaming media creation per week (100k 2 yrs ago)
• 85% of available streaming media files are in RN`s format
• 100 million unique users
• Technology Leader: several Awards as the best product
Business assets:
• Dynamic management that understands this market
• Streaming media is critical to the WWW
10
RealNetworks RealNetworks Dilemma: Dilemma: WWhich business model?hich business model?
Website traffic revenues through content aggregation and tech innovations to end consumers (JukeBox)
Software Fees
Microsoft`s cash and networking power may result in a lost battle for technology standard
Real.com is more vibrant than Broadcast.com
Yahoo core business is content aggregation
Leverage on Real`s strategic alliances, becoming the major hub for streaming tech and content.
11
Agenda
What business are we in?What business are we in?1
Who are the competitors?Who are the competitors?2
What foreign markets to enter? How?What foreign markets to enter? How?3
What Human and Financial Resources will be needed?What Human and Financial Resources will be needed?4
What’s in the future of this business?What’s in the future of this business?5
Q & AQ & A6
12
Competition Overview
PlayersPlayers ThreatsThreatsHow to How to
overcome…overcome…
Software: RealPlayer & RealJukeBox
Content Aggregation: Real Guide
Content Producer: Take5
•RealNetworks
•Microsoft
•Apple
Microsoft is a very strong competitor with monopoly position in PC OSs
RealNetworks can capitalize in its Ecosystem and key partnerships
•RealNetworks (13th)
•Yahoo Broadcast
•MediaPlayer.com (42nd)
•RealNetworks
•Large bricks-and-mortar media companies
Yahoo internet reach can Leverage its streaming aggregation business
Continue to deliver a more vibrant product worldwide
Media Companies eminent conflict
Turn Take5 into a content hub fed by third parties
13
Agenda
What business are we in?What business are we in?1
Who are the competitors?Who are the competitors?2
What foreign markets to enter? How?What foreign markets to enter? How?3
What Human and Financial Resources will be needed?What Human and Financial Resources will be needed?4
What’s in the future of this business?What’s in the future of this business?5
Q & AQ & A6
14
Choosing Target Markets
Decision criteria:
• Demographic and Economic information– GDP per capita– Total population– Telephone Penetration
• Internet current user base (1999)
• Internet projected user base for 2003
• Political Environment
15
Demographic & Economic Data
GDP (US$ Bi)
GDP per capta PopulationTelephone
PenetrationTelephone
Penetration (5yrs)Annual Growth
Total Growth in 5yrs
Index
Japan 4,079,880 32,380 126.0 51% 56% 1.010 1.05 2,178 Germany 2,119,700 25,850 82.0 54% 57% 1.027 1.14 1,299 France 1,471,460 24,940 59.0 59% 62% 1.030 1.16 1,012 UK 1,262,600 21,400 59.0 50% 53% 1.026 1.14 718 Italy 1,134,000 20,250 56.0 46% 50% 1.015 1.08 558 Sweden 227,840 25,600 8.9 146% 146% 1.029 1.15 384 Netherlands 391,208 24,760 15.8 53% 56% 1.037 1.20 249 Switzerland 288,576 40,080 7.2 72% 76% 1.030 1.16 242 Australia 379,610 20,300 18.7 47% 48% 1.045 1.25 220 Spain 546,000 14,000 39.0 32% 40% 1.035 1.19 210 Korea 363,400 7,900 46.0 36% 51% 1.025 1.13 148 China 934,500 750 1,246.0 8% 30% 1.078 1.46 115 Norway 151,052 34,330 4.4 55% 59% 1.024 1.13 93 Finland 125,372 24,110 5.2 48% 54% 1.051 1.28 77 Brazil 781,470 4,570 171.0 8% 28% 1.030 1.16 76 Russia 335,800 2,300 146.0 16% 30% 1.020 1.10 60 Mexico 397,000 3,970 100.0 12% 28% 1.048 1.26 60 Argentina 329,199 8,970 36.7 13% 36% 1.043 1.23 51 Singapore 105,000 30,000 3.5 40% 50% 1.020 1.10 46 NewZealand 53,802 14,700 3.7 46% 48% 1.020 1.10 28 Chile 71,669 4,810 14.9 10% 28% 1.035 1.19 9 India 430,000 430 1,000.0 1% 10% 1.054 1.30 7 Thailand 132,000 2,200 60.0 2% 10% 1.020 1.10 2
USA 8,009,820 29,340 273.0 67% 70% 1.039 1.21 6,466
Source: CIA (1999)
16
Demographic & Economic Data
Index
-
500
1,000
1,500
2,000
2,500
Japa
n
Ger
man
y
Fran
ce UK
Italy
Sw
eden
Net
herla
nds
Sw
itzer
land
Aus
tral
ia
Spa
in
Kor
ea
Chi
na
Nor
way
Finl
and
Bra
zil
Rus
sia
Mex
ico
Arg
entin
a
Sin
gapo
re
New
Zea
land
Chi
le
Indi
a
Thai
land
Index=(GDP*GDP growth 5yr*Telephone Penetration)/1,000
17
Internet Users (in millions)
1,999 2,000 2,001 2,002 2,003 2004 2005 SourceWorld 300 450 560 670 780 890 1,000 Angus Reid GroupWestern Europe 107 134 161 188 215 Forrester ReserchAsia-Pacific 22 34 54 75 95 374 IDCLatin America 9 13 18 24 30 IDC
1,999 2,000 2,001 2,002 2,003 2,004 2,005 USA 110 132 158 190 228 232.66 237.31 Computer Industry AlmanacJapan 20 24 29 35 41 Japanese Ministry of Posts & Telco.Canada 13 16 19 22 27 Computer Industry AlmanacUK 13 16 20 23 26 Germany 12 16 20 22 24 32 GFKFrance 9 12 14 17 19 BetweenItaly 9 11 14 16 18 BetweenAustralia 7 7 9 11 14 Computer Industry AlmanacKorea 6 6 9 11 15 Computer Industry AlmanacRussia 5 8 10 12 14 Monitoring.ruSweden 5 6 6.7 7.3 8 Computer Industry AlmanacChina 4 9 15.13 26 44 74 126 China Internet Netw. Info. Center, StrategisBrazil 4 5 8 10 12 IDCSpain 4 4 5 6 7 Computer Industry AlmanacMexico 2 3 4 5 6 IDCNorway 2 2.1 2.5 2.9 3 CyberSc@nSingapore 1 2 2.1 2.5 3 Angus Reid GroupArgentina 0.9 1.3 1.8 2.4 3.0 IDCChile 0.3 0.4 0.5 0.7 0.9 IDCIndia 0.2 1 3 6 8 IDC
Assumptions: 1) USA will grow at 20% annual rate until 2003 (Goldman Sachs estimate)2) Canada will grow at the same rate as the USA3) All Western European countries will grow at the same rate4) All Latin America countries will grow at the same rate
= information not available
18
Internet Users (in millions)
Japa
n
Can
ada
UK
Ger
man
y
Fra
nce
Italy
Aus
tral
ia
Kor
ea
Rus
sia
Sw
eden
Chi
na
Bra
zil
Spa
in
Mex
ico
Nor
way
Sin
gapo
re
Arg
entin
a
Chi
le
Indi
a
41
27 2624
19 18
14 1514
8
44
12
7 6
3 3 3.0 0.9
8
20
13 1312
9 97
6 5 54 4 4
2 2 1 0.9 0.3 0.2-
5
10
15
20
25
30
35
40
45
Mill
ion
s o
f U
se
rs
1,999
2,003
19
Primary Target Markets
ChinaChina = Fastest growth in the world, 2nd largest market by 2003
JapanJapan = Huge market with high disposable income
UK, France, Germany & ItalyUK, France, Germany & Italy = Fast growth, relatively simple implementation and high disposable income
20
China
• Demographics (source: Strategis Group)
– High level of education among target audience• 35% college degree, 45% university degree
– Higher than average income– Dominance of single males
• 71% of internet users are males• 69% of males are singles
• Short-term content aggregation strategy:– Focus on this audience, providing i.e.: sports, news, career
orientation
• Political Environment– Xenophobic, but willing to receive foreign investments (paradox)
• Entry strategy:Entry strategy:– Increase ties with China.com and other local content providersIncrease ties with China.com and other local content providers– Look for local partners for sales, content aggregation and customer Look for local partners for sales, content aggregation and customer
support support both for political, cultural and economic reasons both for political, cultural and economic reasons
21
Agenda
What business are we in?What business are we in?1
Who are the competitors?Who are the competitors?2
What foreign markets to enter? How?What foreign markets to enter? How?3
What Human and Financial Resources will be needed?What Human and Financial Resources will be needed?4
What’s in the future of this business?What’s in the future of this business?5
Q & AQ & A6
22
What’s Involved in Localizing Content?
Software
•RealNetworks employs 650 in Seattle•Dynamic Management
Drive to improve the breadth and quality of the products and services it
offers in order to provide a durable platform for growth in international
markets
Content
US: Localization StrategyStaff: 12 led by Webster
Asia Manager Europe ManagerStrategic Alliance
StrategicAlliances
Editor
Operator
China
Improve Partnerships
Japan
Editor
Operator
UK
Editor
Operator
German
Editor
Operator
France
Editor
Operator
Italy
Corp. Sales
Corp. Sales Corp. Sales Corp. Sales Corp. Sales
23
Increasing International Revenues result in positive cash flows….
… the idea is that this business model is scalable.
Revenues vs. Costs
35,31047,711
58,610 65,33655,778
93,707
136,656
157,154
2,000 2001 2002 2003
In U
S$
000
Intl COSTS Intl REVENUES
42%
23%
CAGR
24
Agenda
What business are we in?What business are we in?1
Who are the competitors?Who are the competitors?2
What foreign markets to enter? How?What foreign markets to enter? How?3
What Human and Financial Resources will be needed?What Human and Financial Resources will be needed?4
What’s in the future of this business?What’s in the future of this business?5
Q & AQ & A6
25
RealNetworks’ Business PortfolioRealNetworks’ Business Portfolio
Cash Cow
Market share to largest competitor
Potential Growth
Software fees
(Client/Server)
Advertising through content
aggregation
E-Commerce
Dog
?Star
Services
Wireless & Handhelds
26
Key Drivers in the Streaming IndustryKey Drivers in the Streaming Industry
Increasing Broadband PenetrationIncreasing Broadband Penetration
Provide the consumer a Provide the consumer a rrichich media experiencemedia experience
Increasing Digital Music marketIncreasing Digital Music market
Advertising RevenuesAdvertising Revenues
Music Industry different patternsMusic Industry different patterns
Internet will Mimic real life Internet will Mimic real life (1)(1)
M&A activity (Stock is Currency!!!)M&A activity (Stock is Currency!!!)
(1) Mary Meeker, Research Analyst
Consumer Expectation
Technology
Revenue Sources
New tech incorporation
Wireless and Handheld enableWireless and Handheld enable
27
Opportunities for the Future
WirelessA revolution is approaching:Internet enabled cell phones will soon be ubiquitousUnprecedent opportunity for exploring streaming technologies:
Voice over IP in cell phones
WirelessA revolution is approaching:Internet enabled cell phones will soon be ubiquitousUnprecedent opportunity for exploring streaming technologies:
Voice over IP in cell phones
HandheldsHandhelds will eventually become multimedia devicesMicrosoft is tied to the Windows CE plataformThe market leader, Palm, will need a partnerRealnetworks is uniquelly positioned to provide multimedia techology for this market
HandheldsHandhelds will eventually become multimedia devicesMicrosoft is tied to the Windows CE plataformThe market leader, Palm, will need a partnerRealNetworks is uniquelly positioned to provide multimedia techology for this market
28
Agenda
What business are we in?What business are we in?1
Who are the competitors?Who are the competitors?2
What foreign markets to enter? How?What foreign markets to enter? How?3
What Human and Financial Resources will be needed?What Human and Financial Resources will be needed?4
What’s in the future of this business?What’s in the future of this business?5
Q & AQ & A6
29
APPENDICES
30
Who are our competitors today?
Competitive atribute: RealNetworks Microsoft Apple
Current client base
Capacity to create new technologies
Cash to back aggressive campaigns
Ability to build alliances
Access to different server platforms
Brand recognition
International presence
Bundle capability
Overall Position
Very weakVery strong
Competitive scenario in the Competitive scenario in the Client & ServerClient & Server streaming software market streaming software marketxx
31
•Customers•Advertising
•Internet•Print•Audio•Video
•Info processing and selection
•Raw info gathering
•News & Movies creation
•End Customer
•Decoder and/or organizer
•Streams & Advertising
•Internet Structure
•Streaming software
•Media company servers
Delivery channels:
•End customer•Internet delivering
•Media Company
•News, movies, music & business
Media Value Chain:Media Value Chain:
RealNetworks Value ChainRealNetworks Value Chain::
Delivery Value Chain:Delivery Value Chain:
Rich-Media?Rich-Media?
– AOL
– TCI
– MSN
– PSINET
– Earthlink
– AT&T
– RealNetworks
– Microsoft
– Apple
– RealNetworks
– Microsoft
– Apple
– DoubleClick
– Cisco– Lucent– Nortel– Nokia– Erickson– AT&T– MCI
– Microsoft
– Apple
– RealNet
– AOL/TW
– Disney
– ABC
– NBC
– News Corp
– Dow Jones
– Bloomberg
– ESPN
32
About the Other Countries
Japan, France, UK, Germany & ItalyBuild on existing local structuresLook for partners for sales, content aggregation and customer support
Switzerland, Scandinavian Countries, Netherlands, Singapore•High incomes and high Internet penetration, but small populations (remember that content aggregation costs are not necessarily lower because of smaller population)
Latin America, Spain, Korea, Russia•High Internet growth and sufficient income per capta, however they are not as promising as the chosen target markets
India, Thailand, Philippines
•Despite fast Internet growth, infrastructure and income are still restrictions in order to achieve critical mass chart
33
Rationale behind Partnerships
BenefitsBenefits
• Partners understand the local marketsPartners understand the local markets
• They help to avoid or minimize political They help to avoid or minimize political issuesissues
• RealNetworks may share its costs with themRealNetworks may share its costs with them
34
Measuring the return of Guide and Take5:
Ways of measuring return on an investment:
CFROI ROIC
ROI
Conceptually better, but unfeasible
Software License fees generated by
RealGuide and Take5
Advertising revenues
Cost of Advertising Revenues Total Revenues
SG&A
Advertising Costs
*
Measured by a software that tracks consumer surfing in RN`s website
A
A
35
Why RealNetworks won’t become Why RealNetworks won’t become a a Netscape?Netscape?
Proprietary integrated platformProprietary integrated platformRelationships with content providers that block Windows MediaPlayerRelationships with content providers that block Windows MediaPlayer
Strong presence in client platforms & key partnershipsStrong presence in client platforms & key partnerships85% market share and RealPlayer is bundled in most new PCs and several apps85% market share and RealPlayer is bundled in most new PCs and several apps
Strong presence in server platforms & key partnershipsStrong presence in server platforms & key partnershipsRealServer comes bundled in major server oper. systems (Sun, Linux RedHat, etc)RealServer comes bundled in major server oper. systems (Sun, Linux RedHat, etc)
More knowledge in software and portal businessMore knowledge in software and portal businessReal.com Guide Real.com Guide 1313thth vsvs WindowsMedia WindowsMedia 4242ndnd
Positive cPositive cash flowash flow
Network of companies that rely on RealNetworks technologyNetwork of companies that rely on RealNetworks technologyContent creators, software developers, ISPs and streaming professionalsContent creators, software developers, ISPs and streaming professionals
Superior technological systemSuperior technological systemBest Product Awards from several opinion makersBest Product Awards from several opinion makers
36
– Huge User Base (>100mm)Huge User Base (>100mm)
– Superior Technology (Awards)Superior Technology (Awards)
– Flexible product to new stream standardsFlexible product to new stream standards
– Highly leveraged EcosystemHighly leveraged Ecosystem
– First Mover EdgeFirst Mover Edge
– Brand RecognitionBrand Recognition
– Successful International entering (Japanese)Successful International entering (Japanese)
– High Mkt Cap can be used for further acquisitionHigh Mkt Cap can be used for further acquisition
RealNetworks’ StrenghtsRealNetworks’ Strenghts
37
– Content creation causes conflicts with its current partners
– Microsoft:
• War for industry standard
• MSFT can leverage its products through networking and bundling
• Is better positioned for International expansion
• The Company already has handheld software that can be used to adapt Media Player
– Different Audio standards (I.e. MP3)
– Search engines as alternative guides
RealNetworks’ ThreatsRealNetworks’ Threats
38
– International Market is relatively unexplored
– Broadband and new complex streaming tech demand (rich-media)
– Provide and aggregate streaming content
– Develop handheld market
– Important new corporate market (cost reduction opportunity, conference call)
RealNetworks’ OpportunitiesRealNetworks’ Opportunities
39
– No clear definition on core business
– Therefore, lack of focus
– Lack of qualified personnel, specially outside of US
– Lack of knowledge in foreign countries, besides Japan
– No handheld devices software
– Relatively low cash power compared to main competitor
RealNetworks’ WeaknessesRealNetworks’ Weaknesses
40
Forecasted Income StatementForecasted Income Statement
Revenue Breakdown by Region
101167
219 254 29233
5062
7244
7485
1713
22
0
100
200
300
400
500
1999 2000 2001 2002 2003
In U
S$
mm
North America Europe Asia and Other
Revenue Breakdown by Segment
91134
172 195 20226
45
6682 94
44
75
113153
14
0
100
200
300
400
500
1999 2000 2001 2002 2003
In U
S$
mm
Software License Service Revenues Advertising
Operating Cash Flow
(20)
0
20
40
60
80
1999 2000 2001 2002 2003
In U
S$
mm
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
EBITDA EBIT EBITDA Margin
Bottom Line
0
10
20
30
40
50
60
70
1999 2000 2001 2002 2003
In U
S$
mm
$0.00
$0.10
$0.20
$0.30
$0.40
$0.50
$0.60
$0.70
$0.80
$0.90
$1.00
Net Income Income per share
Increasing Asian Revenues… Increasing Advertisement Revenues…
A cash generating company… Increasing net income…
41
Source: Forrester Research
Digital Music Industry in US$mm
7501,050
2,000
3,500
6,000
1999 2000 2001 2002 2003
CAGR: 68%
World Number of Online People Evolution (in Millions)
0
200
400
600
800
1000
1200
World Asia/Pacific Europe North America
2000 2005E
30%
47%
21%
15%
Source: IDC
Internet Advertising in US$ Billions
0.20.85
1.95
3.9
5.4
7
8.8
10.8
1996 1997 1998 1999 2000 2001 2002 2003
CAGR: 29%Real Network's Market Capitalization since IPO (In US$ Millions)
-
2,000
4,000
6,000
8,000
10,000
12,000
14,000
Asia will become the largest market… Digital Music is a big business…
Advertising dollars are real…The Company`s Market Cap reflect this awesome potential…
Market DataMarket Data
42INITIALS
– As today
– Give up software (core so far)
– Give up content
– Become a content producer
– Partner with MSFT rivals (Sun)
Alternative Business Models:Alternative Business Models:
– Outsource aggregating
43
How to deal with talent shortage in US and abroad?How to deal with talent shortage in US and abroad?
USSeattle
Concentrate all software localization in SeattleBring language/cultural experts (in which international expansion
is essential) to headquarters
Content Aggregation:Must cater to local needs in both
cataloging and developing proactive aggregationLOCAL EXPERIENCE
Abroad
Promote foreign students recruiting in schools all over America
Hire from software houses that have experience with software localization
44
Ecosystem
Competition in the Server & Client
Value Chain
Becoming Netscape?
RealNetworks`dilemma
Business alternatives
Industry Drivers
RealNetworks`core business
Presentation DirectoryPresentation Directory
RealNetworks` Strengths
RealNetworks` Weaknesses
RealNetworks` Threats
RealNetworks` Opportunities
Forecasted Income Statement
BCG Portfolio Analysis
The Streaming Chain
Market Data Analysis
Competition Overview
Calculating return in Guide and Take5
Our MessageNew Ventures
Talent Problem
Rationale behind partnerships
Other Countries
Summary
International Expansion Investments
Expansion Organization
Choosing Criteria
Demographic&Economic Data
Demographic&Economic Graph
Internet Users Data
Internet Users Graph
Primary Target Markets
China
SWOT Analysis
Foreign Markets
How to enter…
Financials and other
Competition
Industry
Core Business
Get Noticed in Foreign Markets
International Pricing Strategy
Key Success Factors
International Pricing
45
Creative Ways to Get Noticed in Foreign MarketsCreative Ways to Get Noticed in Foreign Markets
Music ConcertsMusic Concerts
Interviews with celebritiesInterviews with celebrities
Religious EventsReligious Events
Make Deals with major Radio and TV StationsMake Deals with major Radio and TV Stations
Alternative advertisements (Malls, Billboards)Alternative advertisements (Malls, Billboards)
Sports BroadcastSports Broadcast
Major Events Coverage:Major Events Coverage:
46
International Pricing Strategy
Server Software:It’s possible to be sold directly to clients at lower prices than from the website.
TradeablesTradeables Non-TradeablesNon-Tradeables
Client Software
Can be downloaded Can be downloaded from any country from any country
websitewebsite
Pricing must be the Pricing must be the same worldwide same worldwide
Pricing may follow regional strategies
AdvertisingServices
Not downloadable, must be treated locally
47
Key Success Factors
AlliancesAlliances
First Mover AdvantageFirst Mover Advantage
Huge Client BaseHuge Client Base
Technology LeadershipTechnology Leadership
•With content providers: increases adoption by end and business users
•With streaming professionals: helps creating an industry support for the product
•With other technology providers: helps creating a standard and increase influence in platform.
•With content providers: increases adoption by end and business users
•With streaming professionals: helps creating an industry support for the product
•With other technology providers: helps creating a standard and increase influence in platform.
Helps create a “de facto” standardHelps create a “de facto” standard
Leverage dominance in the server marketsLeverage dominance in the server markets
Promotes client and server dominance through continuous product improvements
Promotes client and server dominance through continuous product improvements
48
Internet access: Dial-up or Cable?
China: TV penetration 25:1 PC penetration
India: Huge access to cable
WebTV may be very successful there
RealNetworks should make a provisionfor streaming technology over Web enabled appliancesthat access the Internet through cable