Annie Kovalchuk Project 2

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Annie KovalchukProject 2

• Lecture Section 2

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Comparing Microsoft and RealNetworks

• Media Player vs. Realplayer

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Microsoft

• Founded in 1975
• World leader in technologies for personal and
  business use
• Offers a wide range of software products

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RealNetworks

• Pioneer in media delivery
• Recognized leader in Internet media
• Develops and markets software
• Products enable users to send/receive
• Audio
• Video

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Some Products by Microsoft

• Windows 95
• Windows 98
• Windows 2000
• Internet Explorer
• Office 2000

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Some Products by RealNetworks

• Streaming Media Starter Kit
• RealProducer Plus
• Video Editing Solutions

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Microsoft Media Player

• Free download
• Multiple Formats
• Profit is in advertising

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RealNetworks Realplayer

• Free download
• Multiple Formats
• Profit is in advertising

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Comparing Profit and Loss for One Month Period
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Performance of Microsoft Stock Over Past Year
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Performance of RealNetworks Stock Over Past Year
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Comparison of Stock Prices

• Both stocks have shown long term (1 year) losses
• Microsoft has regained some value over past month
• RealNetworks trading at low for year

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Long Term Prospects of Microsoft vs. RealNetworks

• Microsofts Media Player directly competes with
  RealPlayer
• Microsoft much better capitalized
• RealNetworks single product companynot
  diversified
• Even if MSFT is broken up, MediaPlayer will
  likely continue to gain market share against
  RealPlayer

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Conclusion

• Media Player and RealPlayer serve same function
• Media Player backed by money and marketing might
  of Microsoft
• Long term prospects of RealNetworks questionable
• Microsoft better long-term investment