RealNetworks Sets Deal With Compaq

RealNetworks Inc., maker of the most popular software for playing Internet audio and video, said its programs will be installed as the default on Compaq Computer Corp.’s personal computers aimed at consumers.

Houston-based Compaq also will promote RealNetworks’ fee-based music, news and entertainment subscription services to new and existing PC customers, said Larry Jacobson, chief operating officer of RealNetworks. The two companies will share revenue from sales of the services, he said.

RealNetworks is trying to retain its lead over rival Microsoft Corp. and persuade more users of its free player to pay to receive music and programming. Microsoft bundles its competing player software with the Windows operating system that runs 90% of PCs, making it important for RealNetworks to reach agreements with computer makers to get its software on PCs.

Seattle-based RealNetworks is talking to other PC makers about similar arrangements, Jacobson said. He declined to specify.

Shares of RealNetworks rose 53 cents to $7.22 on Nasdaq.