WebTV Networks Inc has struck a deal with streaming media server company RealNetworks Inc to support RealAudio G2 on its WebTV network. RealNetworks has undertaken to develop a version of its RealPlayer G2 for Windows CE, the version of the Windows operating system that has been cut down for embedding in consumer electronics devices. Such a port will ensure that WebTV can incorporate support for G2 in future versions of its network services.
What makes the deal especially piquant is that Microsoft Corp, which owns WebTV, has spent the better part of the last year fighting RealNetworks for control of the streaming media space. The Redmond software giant has been pushing its own Windows Media Player as an alternative to RealNetworks G2. RealNetworks has accused Microsoft of disabling its products on the Windows platform. WebTV supported RealNetworks formats before it was acquired by Microsoft, but this deal represents the first upgrade since RealNetworks and Microsoft fell out last year. Already analysts are wondering whether it signals a thaw in the streaming media cold war.