The
History & Future of Real Networks
New York , NY January 1962
Barbara Glaser gave birth to Robert Denis
Glaser.
Growing up in a middle class Yonkers
neighborhood Rob Glaser's youth seems to
mirror his adult professional life. At
a very young age it was obvious this was one
smart kid. He was a math whiz with an incredible
memory for facts and figures - and a life
long passion for the game of baseball. Not
far from his childhood Yonkers home was
Yankee Stadium. Lacking athletic ability to
play the game, "Chubby" showed his
enthusiasm for the game by memorizing at
least 3/4 of all the facts and figures of
the Encyclopedia of Baseball.
If
you at age 7, you had asked Rob what he
wanted to be when he grew up,. his answer
would have been to be the sports announcer
for the Mets or Yankees. Today he is the
co-owner of Seattle Mariners baseball team,
and has an exclusive deal with MLB to
deliver the all the games via the Internet.
He also owns part of the Pro Bowlers
Association. Another hobby.
With a stereotypical combination of smarts
and ability that other kids love to hate,
his pre-teen years persona was that of a
clean cut "geeky" kid. He started
learning about computers when he was in
first grade. Keep in mind this was the early
70's and the personal computer was not
exactly a common concept at that time. Like
anyone who "Thinks Differently" (
To take an Apple slogan) Rob Glazer was
labeled as weird.
He had to learn quickly to use his smarts to
deal with and outwit the bullies. A
skill he would find useful later in life.
At age 12 Rob started his own school radio
station and near single handedly wired up
the entire high school he attended. It was a
precursor of bigger things to come in his
adult life. After graduating from Yale with
a B.A. and an M.A. in Economics and a B.S.
in Computer Science, Rob considered going to
graduate school, working for Hewlett-Packard
Co., or signing on with a little-known
software company in Seattle called
Microsoft. His friends never expected him to
choose Microsoft, but Glaser told them about
MS-DOS, the software program Microsoft made
to run every PC. Every time a personal
computer is sold, Microsoft makes money,
Glaser said.
"He
saw how important it could be," college
friend Peter Rubin says. Glaser packed his
Toyota and headed west. This was 1983 and
Rob Glaser just had his 21st birthday.
Glaser was the archetypal Microsoft
employee: supersmart and hyperaggressive.
Glaser quickly became a star. He worked on
Microsoft Word, moved to the company's
networking group, and eventually became
vice-president of the multimedia systems
group. He quickly worked his way up the
ranks. Bill Gates even threw his bachelor
party.
After 10 years at Microsoft, Glaser
walked away from the company a wealthy man,
took some time off, and then in 1994 founded
Progressive Networks which became Real
Networks.
Mr. Glaser
says he was inspired after seeing an early
form of Netscape called Mosaic. "I
downloaded Mosaic and, immediately, all the
light bulbs went off. It was like, hey, this
is how we're going to do interactive
television, but instead of doing it on a
brand new infrastructure, we're going to
start with the world that I knew very
well."
In April of
1995 Real Networks released their first
player. Rob Glaser can and should be
credited as " The man who broke the
sound barrier on the Internet". Even if
Apple & Microsoft would argue the point,
clearly no single person has done more to
bring audio and video to the Internet than
Rob Glaser. With a passion & fascination
with the convergence of media and
technology, Glaser has been on a tightrope
each step of the way, attempting to placate
and at the same time outpace the other
players.

Courtesy
of BigCharts.Com
In November of 1997 Real Networks became
a publicly traded company.
Real
Player G2 was released in 1998. Adjusted for
splits, Real Networks once traded as high as
90.00 a share.( Today it hovers around 6
bucks.) The new Real Player G2 player
interface offered users one-button access to
more than 60 leading media content
providers, and alerted users whenever new
media content or breaking news stories were
available. Other features to the Real G2
RealPlayer included: An intuitive, Web-based
interface that allows users to customize
their selections and choose from leading
Internet broadcast sites, including ABC,
FOX, CNN, ESPN, CBS SportsLine, Wall Street
Journal, CNET, Sony, and Warner.
Through
new channels and preset capabilities,
RealPlayer and RealPlayer Plus™ G2
directly connected users to the widest range
of quality, brand-name, live and on-demand
programming on the Internet. New RealPlayer
Plus featured numerous extras not available
with the "Free" player, including
a graphic equalizer and video quality
controls, which provided users with complete
control over the quality of their media
experience on the Web.
Many figured Real would dry up in the dot
com bust that sent Internet stocks into a
free fall. Especially in November of
1998 when Microsoft announced it would
be unloading their 3.3 million shares of
RNWK and accelerating the development of
it's own media player which would
"compete" with Real Player. Real
Networks estimates Microsoft made about $100
million on its investment.
Real
versus Microsoft
Rob
Glaser accused the software giant of
intentionally disabling its products and
maintained that the Real's streaming media
player no longer worked once Microsoft's own
player was installed. Microsoft disputed the
claim all along and blamed the problems on a
defect in a beta version of the RealPlayer.
I recall one day using a Windows based PC
and a question was presented when launching
Windows Media Player. It asked if I would
like Windows Media Player to be my
"Default" player. I said no. Then
after restarting the PC later that day, I
discovered the Windows OS automatically
reset the Windows Media Player as my default
player. I remember chuckling at that
"innovation" wondering why they
had even bothered to ask.
At
that time you could select Real Player as
your "default player" but then
every time you restarted the PC Windows
would reset itself as the "factory
default player". There was not much in
the way of content for Windows Media back
then so finally I just removed Windows Media
completely which almost magically fixed all
the " compatibility issues" I was
having with Real Player at that time. To be
fair I was having a lot of issues with that
hunk of junk PC and one day I just got fed
up and hurled it into the swimming pool. I
went and bought a Mac and have never looked
back.
The folks at the Real camp continued to
improve upon their player enjoying a strong
lead over Windows Media & Quicktime. In
November of 1999 Real Player 7 was
introduced. Followed by Real Player 8 in May
of 2000. Which offered full screen VHS
quality playback.
Unlike Microsoft & Apple who have other
sources of revenue streams to fuel their
media players and engage in the
"Streaming Video Wars" Real
Networks doesn't build Macs or rule the
Windows world. But Rob Glaser has a knack
for seeing the future and capitalizing on
opportunities before others do. In December
of 2001 Real One Player and the all new Real
One subscription service was launched. By
April 2003 paying subscribers passed the 1
million mark.
Later
renamed Gold Pass, Real Networks has built a
rapidly growing subscription business on the
Web that has generated a revenue stream that
has finally turned Real Networks into a
profitable company. During the peak of the
"Napsterization of music", it was
Glaser who had the idea--and the skills--to
broker a deal with three fiercely
competitive recording labels to launch
MusicNet.com, an AOL only music service.
This isn't about technology. It's about
politics.
Money on this scale - combined with the
likelihood that a chunk of all "hard
media" sales and rentals, currently
worth about $60 billion annually, will shift
to digital download - has drawn a diverse
pack of competitors: tech giants IBM and
AT&T, the five major record companies,
Cable companies and of course, Microsoft.
Rob Glaser realized if Real Networks was to
survive he had to find some friends in the
neighborhood if he was to continue to
compete with Microsoft. Especially after
Bill Gates pledged a few billion dollars to
win the "streaming video wars" at
about the time Windows released Windows
Media 9.
In
July of 2002 Real Networks officially
announced Helix and made a move to invite
the open source community to improve upon
Real Networks technology. For the uninformed
Helix is like Linux in that the code is open
source and anyone is free to improve upon
it.. The Helix community helped to further
the development of DRM ( Digital Rights
Management) a key component previously
lacking in Real Player. Rob also had joined
up with the MPEG4 Forum. Though MPEG4 is
based on Quicktime architecture, the idea
behind MPEG4 is to create a way to
universally encode for all players. In the
future .mp4 files will play using Quicktime
or Real Player. MP4 promises also to do for
video what mp3 did for music.
Imagine in the early days of TV if CBS, NBC
and ABC didn't agree on how to encode
television broadcasts. You would of had to
buy three different TV sets to watch all the
shows. Obviously one universal standard is
what is needed to propel Internet
distributed video.
While Microsoft is a token member of the
MPEG4 movement http://www.mpegif.org/mpegif/index.php,
they are not supporting .mp4 in Windows
Media Player. Microsoft wants the whole pie.
Rob Glaser however understands that if you
can increase the size of the pie the slices
are bigger for everyone. Sure Rob Glaser
wants to remain a leader in digital media
delivery, but nobody has ever called him a
monopolist, and not one company has ever
cried foul or raised anti competitive
practice concerns against Real Networks.
Another
thing Rob Glaser understands and that
perhaps Microsoft is still blind too, is
that the future of Streaming Media isn't
about the players anyway - it is about the
content, and who gets to deliver that
content. True Real Networks has been accused
of "spying on it's customers" but
that whole concept and hype is warped . Real
Networks doesn't care what YOU watch, it
cares what most people are watching. By
gathering this data they are better able to
serve you and provide the most popular
content.
One challenge for Rob Glaser is to develop a
new Real Producer for Macs. While Apple may
have a comparatively small user base, much
of the Internet video content is created on
Macs. When it comes to video, editing &
encoding Apples computers and software are
by far superior to the PC. Content
creators have switched from OS9 to X and the
new G-5 computers don't come with OS9. To
create Real Video files Mac users are still
using Real Producer 8.5. Even Cleaner 6 for
the Mac requires content creators to work
back in OS9.
Streaming Magazine recently called Glaser
"The Most Powerful Man in Streaming
", saying "Glaser and his
company pioneered the concept of streaming
media, and RealAudio and RealVideo have
transcended the limit of simple brand names
to become a generic term for the entire
streaming concept." Glaser has long
been intrigued with the nexus of media,
computing and communication. As television
and radio transition from a broadcast to an
online medium, Glaser envisions turning the
Internet into the next mass medium.
It is this vision Glaser has committed his
life to. While Real Networks has made him a
billionaire , he still shows up at the
office, puts in 60 hour weeks & flies
all over US and the world as "The
Streaming Media Evangelist" trying to
convince the content owners to release some
content. You have to admire the man's
commitment. If I were a billionaire I'd be
relaxing on a beach in Tahiti.
Quietly without much fanfare during the
height of the busy Christmas season on Dec
18th Real Networks filed a lawsuit against
Microsoft. Claiming violations of federal
and state antitrust laws. The complaint
alleges that Microsoft has pursued a broad
course of predatory conduct over a period of
years by abusing its monopoly power,
resulting in substantial lost revenue and
business for RealNetworks. The complaint was
filed in federal court in San Jose,
California and alleges that Microsoft has
illegally used its monopoly power to
restrict competition, limit consumer choice
and attempt to monopolize the growing field
of digital media. Real Networks is seeking 1
Billion in damages.
Read
More about the Lawsuit on Streaming
Media.Com
I don't believe winning or loosing this case
will make or break Real Networks. But if I
were the Judge I would give Real Networks
something better than a billion dollars. He
could end the streaming video wars by ruling
to force Microsoft to adopt the MPEG4
STANDARD like EVERYBODY else in the industry
has agreed to.MPEG = Motion Pictures Experts
Group - The same Standards body that brought
you MPEG2 which is widely used for today's
television. MPEG4 is the next generation of
digital media .If you look at the Microsoft
agenda, it's all about the Windows Media 9
codec and why it's better than MPEG4.
Microsoft wants its codec to be the thing
that the industry embraces. The harder
Microsoft pushes an anti-common-standards
agenda, the better it is for Real Networks.
If
you're looking for mainstream solutions in
the marketplace, you've got two choices. One
embraces open standards and in fact is built
on an open source foundation — Helix —
while the other one is tied to Microsoft
operating systems. History shows that if one
company, even a super-powerful company,
pushes a proprietary solution and the rest
of the industry is behind open standards,
open standards win.
Recently
Real Networks announced RealAudio 10 &
RealVideo 10
Breakthrough
advances in audio and video quality.
RealVideo 10 is 30% better and is backwards
compatible to RealPlayer 8. RealAudio 10,
with AAC, is standards-based so it works
with many consumer devices and includes new
Lossless and 5.1 Multichannel options. A
preview version of Real Producer 10 is
also available. Sorry Mac content
creators - only 8.5 ( Will someone please
ask Rob to make Real Producer 10 for Mac OSX?
)
The future of Real Networks can not be
predicted. But you can be assured the future
of streaming media will somehow include Rob
Glaser. The King of Streaming Media.
Article by 4Video
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