American History 1988
Chapter 396 - 385 Unified Front

Chapter 396: Chapter 385 Unified Front

"Grice, as far as I know, Microsoft was targeting Real Networks, right?

Free bundling, promotional restrictions, pressuring partners, I’ve seen all these tactics."

Dean had just met this former Microsoft executive, Robert Glaser, across from the Seattle arena on Yankee Avenue.

He was very surprised by Dean’s arrival, as the competition between Netscape and Microsoft was becoming increasingly sharp.

Although Grice had left Microsoft, being in Seattle and because of the Real player affair,

he closely watched every move of his former employer. Dean’s visit was really beyond Grice’s expectations.

"Mr. Price, I have no intention of getting involved in your competition. Real Networks is developing well, perhaps..." Grice apologized with a shrug.

He didn’t want to get involved in this matter, especially because Microsoft was his former employer, and Grice knew all too well their tactics.

He didn’t want to burn bridges with Gates unless absolutely necessary, considering that the two companies weren’t far apart.

Moreover, Real Networks was just getting started, and Grice believed that the competitive market was large enough that their competition with Microsoft hadn’t yet come to direct confrontation.

Of course, the young man before him also held a special identity, so Grice chose not to offend either side.

"I understand Real Networks’ concerns, but Grice, you should know better than anyone the style of Microsoft."

Dean looked at him seriously, "When they free up their hands, no one can escape disaster, because you and I are both involved in this internet enterprise."

That statement hit Grice right in the heart. No one believed more in Microsoft’s resolve in the internet domain than he did.

However, even knowing Dean spoke the truth, Grice still shook his head.

"Real Networks is expanding its streaming media business, and this doesn’t clash with Microsoft’s strategy.

We also don’t want to get involved in the browser disputes, which don’t benefit Real Networks."

"But Microsoft is imposing format restrictions on Real Player and they’re also not providing sufficient support for some system plugins to Real Networks."

Dean’s words once again plunged Grice into silence, although he was trying hard to avoid this topic.

Microsoft’s intentional and unintentional actions still greatly hindered Real Networks.

As is well known, there are various video formats online, some internationally standardized.

Others, like those developed by companies such as Real Networks, are proprietary.

And if it’s the latter, it often means patents.

Usually, to make their video formats more widely circulated, most companies don’t impose restrictions.

But Microsoft persuaded some other video format manufacturing companies to sign exclusive licensing agreements with them.

Without a patent license, other players cannot freely support these formats.

In other words, Microsoft’s media player can play all video formats available online.

But some companies can’t, like Real Networks.

If a media player can’t support all formats, in the long run, fewer media companies will choose to work with them.

Over time, the audience for this player will gradually decline, leading to its eventual elimination.

This is the problem Real Networks faces now; Microsoft has not yet tightened the noose.

But someday in the future, if they want to do it, the outcome is uncertain.

Then there’s the issue of support for system plugins; Microsoft is also intentionally slowing down Real Networks’ progress.

If a software company encounters issues during development, they usually seek support from Microsoft.

For those companies with good relationships, Microsoft naturally provides excellent service.

However, if it’s a competitor, like Netscape and Real Networks, they are on their own.

Fortunately, Dean had prepared for this a long time ago, so Netscape’s problems are manageable, but the nascent Real Networks isn’t so fortunate.

Recently, in the development of new products, Grice distinctly felt that the technical support staff from Microsoft were dismissive.

These problems weren’t prominent yet, but Grice was already feeling the chill.

"OK," just then, Dean instead smiled first, "Perhaps it’s too early to discuss this topic now.

But if you ever need, you can call this number."

Dean stood up and handed him a business card; today’s meeting was just a preliminary contact.

Netscape still dominanted the browser market, and Microsoft hadn’t engaged in more aggressive actions yet.

Most importantly, Grice hadn’t developed that urgent sense of crisis yet; Real Networks wasn’t at a life or death stage yet.

"If it really becomes necessary," Grice took the business card, "I will."

"Good," Dean nodded, "Perhaps we’ll have the chance to collaborate in the future."

With that, Dean’s trip to Seattle was concluded, and he had other places to go.

After sending Dean off, Grice looked at the business card in his hand and fell into thought.

He was not unaware of the problems Real Networks might face in the future, but Grice always harbored a bit of hope.

Because he had worked at Microsoft before, Grice was well-versed in Microsoft’s competitive ways.

To avoid narrowing the company’s future path, he constantly looked for alternatives from the start.

While making media players, Real Networks also provided various internet-based radio and TV services.

These businesses make money by charging Internet users subscription fees, and they can also insert some advertisements in broadcasts and television.

In addition, Grice planned to develop profit-making methods such as paid music listening and video watching in the future.

For instance, charging users thirteen US dollars per month for listening to music online, and ten US dollars per month for playing games online.

Grice had always believed that the service market was Microsoft’s weak point, and he could still hold onto the online audio and video service area after losing the player market.

The above was based on market and business considerations, and beyond these, there were some personal factors.

Grice had worked at Microsoft for ten years, and when he left, he had risen to the position of vice president, and he was still among the relative elite.

During those years, Gates had personally hosted a bachelor party for Grice.

So Grice always believed that, with these personal relationships, there was still room for negotiation between Real Networks and Microsoft.

However, Dean’s arrival today made Grice slightly more cautious.

He planned to send an email to Gates in the next few days; if the two companies could cooperate, that would be best.

"Boss, Real Networks doesn’t seem keen on this matter," Anna couldn’t help discussing the just-concluded meeting on the road.

"It’s not surprising; Grice always thinks he understands Microsoft well enough and has prepared for it.

But once business competition becomes intense, pressure will come from all sides, especially when the opponent is Microsoft.

Real Networks is in a disadvantaged position, and if the situation becomes unfavorable, the collapse will occur faster than he imagines."

The company founded by Grice, Real Networks, has not even gone public yet, so its ability to withstand risks is undoubtedly much worse.

"So, are you saying they might contact us on their own initiative later on?" Anna’s eyes lit up.

"Of course," Dean smiled, "that time won’t be too far off."

He was so certain of this because the model of Real Networks decided it.

Possibly because of too deep an influence from Microsoft, the Real player developed by Grice required payment.

Yes, that’s right, the player was excellent. But to use it, users had to spend thirty-nine US dollars to purchase it.

However, as Microsoft changed its Internet strategy, the Media player built into the Windows system had already become free.

With one video player being paid and another free, one need not think too hard to know which one users would ultimately choose.

Although Real player was technologically leading now, how long could it maintain this lead under such a trend?

The key issue was that Grice had to charge for his company’s player, otherwise Real Networks would lose its main source of profit.

Wealthy Microsoft did not care about this little income, but it was the foundation for Real Networks’s existence.

Even if Grice persisted a little longer in the future, Dean was now ready to speed things up.

For instance, having Yahoo release a couple more general articles about Real Networks, then the comparison target would be locked on Microsoft’s Media player.

Given Seattle’s sensitivity and the current focus on Yahoo, it would be hard for them to ignore Real Networks.

For the value of later united fronts, Dean didn’t mind using a few more tricks.

"By the way, Boss, where are we heading next?" Anna hadn’t forgotten that this trip had more than one destination.

"Utah," Dean led the way forward, the next visit was to Novell company.

The latter’s main business was networking operating systems, and it also had a nickname: "Microsoft of LANs."

Well, the name alone made clear what it was about.

Most importantly, Novell was also planning its strategy on the Internet.

"Microsoft of LANs," beginning to advance on the Internet?

Alright then, after Netscape, Novell had become Microsoft’s second major concern.

Since that was the case, it was certainly a potential ally.

In order to surprise Gates, Dean was contacting all of Microsoft’s past or current competitors.

A one-sided statement from Netscape was ultimately weak; only the collective voice of the entire industry would be loud enough.

Along with the connections in Washington and evidence gathered over the past two years, Dean was preparing to set off a big firework over the skies of Seattle.

But before they even boarded the plane, Dean unexpectedly received a call from Clark.

After briefly saying a few words, he hung up the phone with a serious expression.

"Utah can wait, let’s head back to Silicon Valley first."

Watching him hurriedly board the airplane, Anna and the others realized that something had happened.

...

Following Microsoft’s May move on Compaq computers to kill one to warn a hundred, Gates’s team was not yet done.

Seattle decided to take stricter measures with business partners, for instance, by adding stricter restrictions in the operating system licensing agreements.

The target of these restrictions was not just computer manufacturers; it included all links in the supply chain.

Microsoft required that personal computers must be "ready to use" at a user’s first startup, and the entire process must also follow Microsoft’s design.

As for the specific design requirements of Microsoft? Such as setting various obstacles for a browser in pre-installed systems.

Yes, Microsoft finally took that step; it decided to completely strangle Netscape at the source.