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AOL in streaming deal
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September 28, 1998: 8:51 a.m. ET
Company to offer RealNetworks technology in online service software
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NEW YORK (CNNfn) - RealNetworks Inc. has agreed to distribute its Internet multimedia software through America Online Inc., the company said Monday.
Under the agreement, America Online will embed RealNetworks' technology in its new online-access software, AOL 4.0, which the company is making available to 13 million AOL subscribers this week.
RealNetworks' RealPlayer software enables playback of video and audio files from the Internet without requiring users to download those files, a technology known as "streaming."
The company will license RealPlayer to AOL free in exchange for becoming the default media player in AOL 4.0.
The agreement could provide a boost to RealNetworks in its battle with Microsoft Corp., as RealNetworks' streaming software will get an endorsement from the world's largest online service.
RealNetworks has been involved in a heated battle with Microsoft, which also makes and distributes multimedia streaming software. In July, RealNetworks President Rob Glaser told a Senate Judiciary Committee that Microsoft's Windows Media Player program effectively disables RealPlayer when both programs are loaded onto Windows.
Microsoft has denied that charge.
The Wall Street Journal reported Monday RealNetworks is likely to announce other deals in the coming weeks, including one that will make its software more closely integrated with Netscape Communications Corp.'s Internet browser and Web site.
Separately, AOL restated its fiscal fourth-quarter earnings to detail charges related to two acquisitions and legal issues. The company reported net income of $7.1 million, or 3 cents a share, after $88.2 million in charges.
AOL took a $60.5 million charge for its acquisition of Mirabilis Ltd. and $10 million for its purchase of NetChannel Inc. The company also took a $17.7 million charge in connection with a settlement of a shareholder lawsuit.
In August, AOL reported a profit of $57.3 million, or 23 cents a share, before charges.
RealNetworks (RNWK) shares closed at 33-3/8, down 5/8 in Friday trading. AOL (AOL) shares finished up 2-5/8 at 114-3/4. 
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