Realnetworks Inc - Offerings Expand To Include Video, 1997

In 1997, Progressive introduced RealVideo, which it touted as the Web's "first feature-complete, cross-platform video broadcast solution." Announced in February and commercially released in June, the software included "destination buttons" that allowed users to easily access programming from the likes of MSNBC, ABCNews.com, CBS/Sportsline, and Fox News. Computer Reseller News explained that the new RealPlayer, equipped with RealVideo, relied on a process known as dynamic streaming. The publication explained that the new version of RealPlayer "detects congested Internet traffic and adjusts the video-frame rate for continuous uninterrupted Web video." In addition to individual users, leading companies like Boeing Co. also began using the streaming video application to deliver training and corporate content to employees.

In August of 1997, Progressive partnered with MCI to create RealNetwork, which allowed multimedia content to be delivered more reliably and efficiently based on a user's geographic location. In September Progressive Networks changed its name to RealNetworks Inc. and announced that it had filed for its initial public offering (IPO). On the first day of trading, shares increased almost 50 percent, resulting in a market capitalization of $600 million. By October, more than 1 million people had downloaded RealPlayer 5.0, which included a variety of audio and video enhancements including near-CD-quality sound for those using 28.8 or greater modems. RealNet-works' revenues soared 134 percent in 1997 to $32.7 million, with a net loss of $11.2 million.