Seattle Firm to Launch Internet Audio Venture

A former Microsoft executive and the founder of Lotus Development Corp. have teamed up to launch a company devoted to delivering audio over the Internet computer network.

Progressive Networks, based in Seattle, will introduce its first product line, RealAudio, at the Internet World conference today in San Jose, Calif. It will enable personal computer users with no more than a standard sound card and telephone line to access audio on the network and play it in real time.

Currently, PC users can download audio on standard phone lines but are subject to delays, because the sound files consume too much transmission capacity. Progressive Networks uses a proprietary data compression technology to overcome this problem.

ABC and National Public Radio have said they will work with Progressive Networks to bring their programs to the Internet.

Progressive Networks is headed by Rob Glaser, who had been vice president of multimedia and consumer systems at Microsoft. The largest investor is Lotus founder Mitch Kapor. The size of his investment was not disclosed.