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RealNetworks' RealOne Player will become the default media player on Compaq Computer's Presario line of consumer PCs, the companies say.

Compaq will also try to sell RealNetworks' recently launched paid membership services, RealOne Membership and RealOne Music, to buyers and current owners of Presario desktops and laptops, the companies said in a joint statement Wednesday. Terms of the deal were not disclosed.

RealNetworks' products will be promoted with an icon on the Presario desktop, a special key on the Compaq Internet Keyboard, and other promotional vehicles, the companies said.

The software, which competes with Microsoft's Windows Media Player, will be the default software to access online broadcasts as well as for MP3 and CD playback. RealOne Player can also be used to burn CDs, download digital media files, and transfer tracks to a portable device such as an MP3 player.

The deal was eased by Microsoft's concession giving vendors more latitude in what they can preload and place as icons on the Windows XP desktop. Microsoft amended its usual requirements in advance of the proposed settlement of the antitrust charges it faces in federal court.

Compaq will start shipping PCs with RealOne Player when the final version of the software is released, expected to be in the first half of next year. Until then, from early next year, all Presario PCs will come with RealPlayer and RealJukebox, the RealOne predecessors, the companies said.

Other Endorsements

The Real deal is one of several victories for RealNetworks. A variety of big-name advertisers have announced they will work closely with the RealOne media subscription services and related suite of streaming media technologies, Rob Glaser, chief executive officer and chairman, says.

Glaser described RealNetworks' new deals and partnerships in a keynote speech at Internet World in New York. The company is working to persuade consumers, service providers, corporations, and developers to bet on RealOne and the related RealSystem media creation and server products as the key multimedia development and delivery vehicles for the Internet.

Absolut brand from Sweden's V&S Vin & Spirt, the Acura unit of American Honda Motor Company, and adiamondisforever.com will be working with RealNetworks to adapt marketing content for the RealOne Player, Glaser says.

Key to Glaser's sales pitch was his assertion that the capability of RealNetworks' technology to run on a variety of operating systems, and its integrated development, server, digital rights, and playback technologies make it the "universal" software package for media creation and consumption on the Net.

Microsoft, however, demonstrated components of the latest rendition of its new Windows Media Technology, code-named Corona, here this week. Components of Corona, such as new versions of Windows Media Audio and Video, Windows Media Encoder, and Windows Media Software Development Kit will go into beta test in early 2002.

Launch Applauded

Glaser called the launch of RealOne services last week "a unifying media experience. We're thrilled with the enthusiastic response we've had after one week." He also defended the fact that RealOne does not offer the entire catalog of music from the major music companies that are backing it.

"There isn't everything for everyone but there's something for everyone ... my best advice is to try it," Glaser said. "If you don't like it you're out 10 bucks and you can cancel your subscription after one month."

The RealOne Membership service gives access to sports, entertainment, news and other content for $9.95 a month. RealOne Music, a front for the MusicNet service, offers 100 music downloads and 100 music streams also for $9.95 a month. The MusicNet subscription services are developed by an alliance including RealNetworks, AOL Time Warner, Bertelsman, and EMI Group.

Also, AOL has rolled out the beta version of its MusicNet music subscription service, looking to show off the service to its 32 million strong legion of users before it becomes broadly available in January. AOL also plans to charge $9.95 a month for the premium service.

RealNetworks and MusicNet are up against heavy competition, however. For example, Pressplay, a joint venture of Vivendi Universal and Sony Music Entertainment, is using Microsoft's Windows Media Audio digital music file format and digital rights management technology for its forthcoming subscription music service.

Marc Ferranti of the IDG News Service contributed to this report.

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