RealNetworks to unveil its new media player today

RealNetworks Inc. will announce details behind its latest streaming media software today, a product that executives and analysts are calling one of the most important in the company's seven-year history.

RealOne, as the new offering will be known, combines many of the features of existing products -- including a player for watching and listening to Internet broadcasts and an integrated RealJukebox music service. It also includes a built-in browser for Internet searching.

Like previous versions of the company's products, RealOne will be available for free. The company plans to make money through an additional subscription service that includes access to premium content channels and premium features such as ad-free radio stations. That service will cost $19.99 for the first month and $9.95 for each month thereafter. RealNetworks declined to disclose its media or content partners.

"It is the best product we have ever built, and by incorporating all these things into one and to make it available for free is pretty incredible," said Peter Card, product manager for RealNetworks'consumer group. "It just gets that much better when you layer on top the premium services and features."

Card said RealOne could enrich a consumer's Internet experience. For example, a person watching a movie trailer through the new player could also read film reviews and find information on where the movie is playing and how to purchase tickets.

The consumer launch of RealOne will occur in the next 60 days, Card said.

The announcement comes at a time when RealNetworks is trying to upstage its chief rival -- Microsoft Corp. -- in the battle over streaming media software. While Seattle-based RealNetworks is considered the leader in the field with 220 million users and 300,000 paid subscribers, the company faces an upcoming challenge from Microsoft which plans to embed its newest media player in the Windows XP operating system. As part of that effort, Microsoft last month said a desktop icon for Windows Media Player must be displayed on all personal computers running the new operating system. Windows XP is scheduled for release Oct. 25.

While the marketing muscle behind Windows XP could boost the number of people using Windows Media Player, analyst Richard Doherty said the battle is not over.

RealOne, he said, could become an interesting alternative for those who want a rich media experience but don't want to make the investment in a new operating system.

"We are going to see a fork in the road here," said Doherty, research director at consulting firm Envisioneering. "If you are afraid to update your computer in the middle of a worldwide crisis, suddenly RealOne becomes very, very attractive."

Doherty played down speculation that Microsoft could take steps to block certain features in RealOne.

"It looks like it will work just fine with XP, and I am sure there will be some people who will have both Real and Windows Media on their computers," he said. "But we think Real will capture more screens and speakers."

He said the challenge now for RealNetworks is to see if "people will pay for the service month by month" rather than simply buying a new media player every couple years.

Larry Gerbrandt, senior vice president at Kagan World Media, said RealNetworks' new offering jumps "a couple steps forward" in the evolution of Internet media players. And at this time, he said RealNetworks is attempting to simply stay ahead of Microsoft.

"For Microsoft, the (media) player is always part of a bigger picture whereas for Real it is the picture. It is the product," Gerbrandt said.

Today's announcement was part of RealNetworks' annual conference being held at the Washington State Convention and Trade Center.

P-I reporter John Cook can be reached at 206-448-8075 or johncook@seattlepi.com

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