RealNetworks, Sony Make Digital Deal

By Susan Rush
from BroadbandWeek Direct, May 1, 2002

Digital media software and services company RealNetworks Inc. is partnering with Sony Corp. to further digital content distribution to the home-networked sector.

The multi-year alliance calls for the companies to collaborate on music, video and other forms of digital entertainment on Sony's handheld devices as well as its PlayStation2 game console. Although no specific product agreements were unveiled, it is possible that RealOne software may incorporated in Sony's OpenMG technology devices.

Sony and RealNetworks have partnered on applications for the PC, and this deal becomes an extension of that partnership. The duo intend to enable consumers to access digital video and audio over set-tops and various portable devices via IP hookups.

As part of the deal, Sony will take a 1 percent equity stake in RealNetworks, valued at roughly $11 million.

The deal with Sony becomes another weapon in RealNetworks' arsenal against rival Microsoft Corp.