NEW YORK (CNNfn) - High-speed Internet service provider @Home Network reached an agreement Friday to deliver near television-quality video to its customers using technology from RealNetworks Inc.
Under the deal, the two companies will provide a broadband media-delivery platform based on RealNetworks ' (RNWK) RealSystem G2 streaming media software.
Broadband transmission allows a single wire to carry several channels simultaneously. Streaming software allows users to play video and audio content from the Internet in real time without download the files onto their computers.
Financial terms weren't disclosed.
Redwood City, Calif.-based @Home (ATHM) distributes high-speed Internet services via cable wires.
With the new broadband platform, @Home subscribers will be able to select from a variety of on-demand audio and video channels. The companies hope to deliver a "near-VHS viewing experience" to Internet surfers.
"Our collaboration with @Home is another crucial step forward in enabling the Internet as the next mass medium for both consumers and content providers," said Rob Glaser, RealNetworks chairman and chief executive officer.
@Home's content partners, such as MTV Online, will be able to deliver multimedia content to their customers more economically. Instead of managing their own high-capacity networks, Internet content providers will send @Home a live stream, which will be replicated on RealNetwork's G2 software or the @Home network.
@Home will begin deployment of the technology in the third quarter.
@Home shares climbed 1-1/2 to 104-1/8 in midday trade, while RealNetworks shares jumped 9-1/8 to 59-3/16.