The story
RealNetworks (then known as Progressive Networks) was founded in 1994 by Rob Glaser, an ex-Microsoft executive, and a management team including Phil Barrett, Andy Sharpless, and Stephen Buerkle. The original goal of the company was to provide a distribution channel for politically progressive content. It evolved into a technology venture to leverage the Internet as an alternative distribution medium for audio broadcasts. Progressive Networks became RealNetworks in September 1997, in advance of the company's initial public offering (IPO) in October 1997 when shares of the company started trading on Nasdaq as "RNWK".
RealNetworks were pioneers in the streaming media markets and broadcast one of the earlier audio events over the Internet, a baseball game between the New York Yankees and Seattle Mariners on September 5, 1995. They announced streaming video technology in 1997. According to some accounts, by 2000 more than 85% of streaming content on the Internet was in the Real format.
Despite this success, problems arose because RealNetworks's primary business model depended upon the sale of streaming media server software, and Microsoft and Apple were giving those products away. As servers from Microsoft and Apple became more capable, Real's server sales inevitably eroded.
In RealNetworks, Inc. v. Streambox, Inc. in January 2000, RealNetworks filed an injunction against Streambox, Inc. regarding that company's product designed to convert Real Audio (.rm) formatted files to other formats. On December 4, 2001, the company was to launch the first coordinated effort to sell and deliver music from major record labels over the Internet, part of a broader initiative by the company to develop subscription Internet services aimed at Web users with fast Internet connections. In 2002, a strategic alliance was formed between RealNetworks and Sony Corporation to expand collaboration.
In October 2005, Microsoft agreed to pay RealNetworks $460 million to settle an antitrust lawsuit.
In August 2003, RealNetworks acquired Listen.com's Rhapsody music service, and renamed it RealRhapsody. It offered streaming music downloads for a monthly fee. In January 2004, RealNetworks announced the RealPlayer Music Store, featuring digital rights management (DRM) restricted music in the AAC file format. After some initial tries to push their own DRM scheme (named Helix DRM) onto all device manufacturers with the Creative Zen Xtra and the Sansa e200r as the only existing compliant devices, they sparked controversy by introducing a technology called Harmony that allowed their music to play on iPods as well as Microsoft Windows Media Audio DRM-equipped devices using a "wrapper" that would convert Helix DRM into the two other target DRM schemes.
Real Networks acquired Dutch game company Zylom for $21 million in February 2006. It became part of GameHouse. Glaser left RealNetworks in early 2010 and returned in July 2012.
On April 6, 2010, Rhapsody was spun off from RealNetworks. In July 2013, RealNetworks acquired Slingo for $15.6 million. The company introduced a mobile phone app called Listen in April 2014 that plays custom ringtones to those calling the user's phone.
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On December 21, 2022, RealNetworks was taken private by Glaser.
From Wikipedia’s article on RealNetworks, shared under CC BY-SA 4.0.7