AOL to swap Real audio technology

America Online is expected to announce that it will replace RealNetworks with Dolby as the default audio streaming technology for its narrowband Net radio service, according to Dolby. AOL will swap RealNetworks' audio streaming technology with Dolby AAC in its narrowband Radio@AOL product. AOL also will incorporate Dolby's audio encoding files in its Broadband Radio@AOL service, which streams MP3 files to its high-speed Internet users. The companies will collaborate on future products such as a live encoder or audio-ripping software.

The announcement is expected to occur within the next two weeks, according to a source familiar with the launch. Despite the change, AOL will still support RealNetworks in other areas on the AOL site. An AOL representative declined to comment.

AOL's decision to discontinue using its technology is a setback for RealNetworks, which has long counted the online giant as its staunchest ally against Microsoft. RealNetworks has been engaged in a market share war against Microsoft's Window Media for many years and has witnessed its dominance in the industry slip.

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