First, Microsoft Buys into the Technology...Then Gives It Away
First, Microsoft Buys into the Technology...
VDONET, OCT. 6, 1996
Microsoft invests $5 million for a 10% stake in VDOnet of Palo Alto, Calif. The two companies share their videoconferencing technologies. But Microsoft's expected entry into video streaming, which allows continuous motion, slows demand as customers wait to see the giant's technology. Last fall, VDOnet was forced to cut its staff in half.
REALNETWORKS, JULY 21, 1997
Microsoft invests $30 million and pays another $30 million to license the Seattle company's core audio and video-streaming technologies. Real remains the leader, with 85% market share, but is forced to give its basic streaming software away free in order to match Microsoft's giveaway strategy.
VXTREME, AUG. 5, 1997
Microsoft pays $75 million to buy the Sunnyvale (Calif.) company and moves its operations to Washington. VXtreme's technology forms the basis for NetShow 3.0, the first version of Microsoft's video streaming that analysts are taking seriously.
...Then Gives It Away
MICROSOFT NETSHOW 3.0
Technology in Windows NT server that delivers on-demand and live audio and video. ''Intelligent streaming'' adjusts to network conditions. Price: Free
MICROSOFT MEDIA PLAYER
Desktop software that receives and plays a wide variety of content streamed across the Web from a NetShow server. Price: Free
MICROSOFT NETSHOW THEATER SERVER
Server software for broadcast-quality video via private networks in hotels and corporate facilities. Price: To be announced
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