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Q: why do companies use realplayer? ( Answered 5 out of 5 stars,   3 Comments )
Question  
Subject: why do companies use realplayer?
Category: Computers > Internet
Asked by: els24uk-ga
List Price: $4.31
Posted: 30 May 2002 02:17 PDT
Expires: 06 Jun 2002 02:17 PDT
Question ID: 18858
why do many organisations (eg, BBC) use the proprietory Realaudio and
RealVideo streaming media (and presumably pay a massive licence fee)
when they could use an open standard (eg MP3 or similar) and pay no
fee?

what are the advantages of real over open standard servers and
software?
Answer  
Subject: Re: why do companies use realplayer?
Answered By: mvguy-ga on 30 May 2002 07:48 PDT
Rated:5 out of 5 stars
 
Hi,

Perhaps my own case study would provide part of the answer: Although
I'm not a technical guru, I'm adept enough at computer use that I
would have little difficulty in buying and using a computer with an
open-source operating system such as Linux.  But even though I don't
particularly like Windows, and even though choosing Linux would have
saved me money, I instead chose to spend extra money on a computer
that uses Microsoft Windows.  Why? For one thing, I'm not the only who
uses my computer, and the people I share it with are familiar with
Windows.  For another, my work requires me to use certain types of
programs, and those programs currently aren't available with the Linux
system.  So just the fact that Microsoft Windows has become so
dominant has made it the obvious choice.

Similarly, I've resisted buying Microsoft Word for a long time.  It's
outrageously expensive, and less expensive options do what I need. 
But I may be buying it soon -- I need to share fully formatted
documents, and the alternative software packages don't always produce
documents 100% compatible with Word.

Do you remember the Beta vs. VHS war for the videotape standard? The
experts said Beta was better; I unfortunately listened to them.  VHS
won not because it was better, but because it had the market share,
and the need for compatibility drove many to choose it over the
superior Beta.

Much the same has occurred with streaming media. Simply put, RealAudio
has become the de facto standard for streaming audio (and RealVideo
for streaming video).  Thanks in part to aggressive marketing, as long
ago as 1997, there were 500,000 downloads per week of Real's audio
player, and its popularity.  One recent report said some 95 million
users have downloaded Real software -- numbers like that are hard to
ignore!  Even Microsoft with all its marketing savvy hasn't been able
to catch up.
http://www.realnetworks.com/company/press/releases/1997/momentum50.html
http://www.realnetworks.com/company/press/releases/2000/rjupdate1.html
http://builder.cnet.com/webbuilding/pages/Graphics/StreamingMedia/?tag=st.bl.3883.dir2.StreamingMedia

In short, then, the BBC and others use RealAudio because they want
people to listen to them.  Sure, they could use an open-source
streaming standard, but there would be few that would listen or have
the capability of listening.  A proprietary system such as Real has an
incentive to encourage downloads of its product that the producer of a
generic streaming-MP3 product, for example, would not.

At this point, the competition isn't between Real and non-proprietary
products. It's between Real and competing products made by Microsoft
and Apple.  But so far, most companies are choosing Real because the
audience is there; if they're using alternatives media formats,
they're usually offering them in addition to the Real format, not
instead of it.

The quality of Real's products also should be noted. Real frequently
updates its system (too often for me!) to take advantage of the latest
technology, and some independent reviewers call its players the best
around.
http://www.pcworld.com/features/article/0,aid,73866,pg,8,00.asp

Real's products also offer other advantages to broadcasters: The
software includes provisions for allowing advertising and for tracking
users that generic products do not. It's easy to learn and use.  It
works well.  Real promotes the broadcasters that use its system. It
provides for the possibility of pay-to-listen subscriptions.

Keep in mind also that "free" software isn't really free.  A company
that has to hire its own programmers to tweak a format and that sort
of thing could end spending far more than it would cost to install
Real's system.  The broadcaster also doesn't need to concern itself
with supporting the listeners' software.

And while I don't know how much broadcasters pay Real, at least one
independent reviewer says that Real's production tools are moderately
priced.
http://webdeveloper.internet.com/multimedia/multimedia_guide_realaudio.html

But the bottom line is that broadcasters choose RealAudio is because
that's the format listeners have, and broadcasters would probably
choose RealAudio (at least in the short term) even if it were an
inferior format (which it definitely isn't).

Here are some links to articles you may find interesting:

A look at the different formats available
http://www.cable-modem.net/dl/dl_streaming.html

MPEG4IP, an open-source standard
http://mpeg4ip.sourceforge.net/

IceS, another open-source standard
http://www.icecast.org/

A brief explanation of streaming
http://www.webopedia.com/TERM/s/streaming.html

More about streaming
http://www.servecast.com/faq_general.html

I hope this answers your question. Thanks for choosing Google Answers!
els24uk-ga rated this answer:5 out of 5 stars
excellent, well researched answer, using researcher's own experience,
which is exactly what i was after (not just a list of links to
real.com sites!).

Comments  
Subject: Re: why do companies use realplayer?
From: xemion-ga on 30 May 2002 08:23 PDT
 
Good answer, mvguy!
Subject: Re: why do companies use realplayer?
From: aaronv-ga on 30 May 2002 11:59 PDT
 
<p>Generally speaking, businesses buy into commercial software because
it comes with technical support (even if that costs extra) and someone
to prosecute in the event of damages or loss of revenue.  Open source
software is often offered for use "as-is" and the business using it
then has to assume all the risks in the event that some part of it
fails.  A broadcasting company like the BBC likely does not employ too
many people capable of identifying and repairing a bug in an
open-standard, open-source software product.</p>
<p>Now if open-standard video streaming software were available for
free and an established world-wide software vendor like IBM offered to
provide for-pay technical support and bug fixes when required, then
that might be an attractive route for a company like the BBC.  IBM,
for example, is offering those kinds of support services for the Linux
operating system which is freely available and a reasonably open
standard.  Big business is buying into that model, replacing pricey
Windows or Solaris servers with cheaper Linux servers now that
reliable support is available.</p>
Subject: Re: why do companies use realplayer?
From: papparelli-ga on 30 May 2002 21:46 PDT
 
Just one other thing to keep in mind... If a company uses a format
such as MP3, the content can be downloaded and redistributed beyond
the control of the source.  Steaming video (such as provided by
RealVideo) allows for the viewing of materials without the capability
of saving.  To put it another way, I could download an episode of a TV
show and send it to my friends, watch it later, and never visit the
site again. This means less traffic, less advertising exposure, etc.
for the site in question.

In short, if you go to BBC to watch a program, you are forced to watch
the program from their servers, allowing the collection of data,
advertising, etc.

If also likely makes it easier to broadcast material under license
with fewer headaches.

Hope I added a little something.  :-)

-Papparelli

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