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Compaq, RealNetworks team
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December 12, 2001: 3:28 p.m. ET
Compaq to pre-load streaming media software on its new Presarios.
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NEW YORK (CNN/Money) - Compaq Computer, the world's No. 2 supplier of PCs, said Wednesday it will pre-load digital media software from RealNetworks on its Presario line of consumer desktops.
Beginning next March, new Presario systems will come with RealNetworks' new RealOne Player software pre-installed with an icon placed on the Windows desktop. Compaq also said it will promote RealNetworks' subscription services, RealOne Membership and RealOne Music.
Between now and March - when the RealOne software will be released officially - Compaq said it will ship the latest versions of the RealPlayer and RealJukebox programs with new Presarios.
The partnership helps RealMedia in its efforts to compete against Microsoft in the digital media industry.
Currently, all the newest versions of Microsoft's Windows operating system include Microsoft's Media Player software, which the operating system uses as the default program for playing digital media in a range of formats, including audio CDs and MP3 audio files.
The two companies have been battling it out recently, each trying to have its own format become the standard for streaming digital media over the Internet.
RealNetworks had the advantage, with its format becoming largely adopted early on in the development of the Internet. But Microsoft has been promoting its platform aggressively, and its efforts have been complemented by the broad distribution of its player software with Windows.
Until recently, users who wanted to receive streaming media based on RealNetworks technology had to download and install the software themselves.
Under its deal with Compaq, RealNetworks' RealOne Player also will be the default program used for audio CDs, MP3 music files and other digital media formats that are supported by both players. Compaq also will include an "entertainment" button on its Presario keyboards that will take users to the RealOne Web site, the companies said.
Shares of RealNetworks (RNWK: up $0.62 to $7.31, Research, Estimates) were up more than 8.6 percent in afternoon Nasdaq trade Wednesday. Compaq (CPQ: up $0.29 to $9.78, Research, Estimates) shares logged more modest gains on the New York Stock Exchange. 
-- Reuters contributed to this report
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