CU later, CUSM?? Re: Investment in VDOnet by Microsoft and US West , Interactive (fwd)
Mon, 28 Oct 1996 15:07:59 -0500 (EST)

<looking into a crystal ball> I see fierce competition. I see CU-SeeMe
actually improving at a rate more like IE/Netscape today. I see many
users very very happy. Ohh! What's this here??? I see Bill Gates
winning the election! What the hell, I didn't know he was running. OH MY
GOD! Bill Gates puts on a mask and it looks like a fony nose and Krasty
the Clown hairstyle! Oh GOD! We should have known "Gates" sounded way
too fake to be someone's real last name! SAVE US SAVE US! Mommy mommy! I
don't want to use IE!!! Don't let them do this to us! Mommy!

End of tale. More to come when I'm bored again.

---------- Forwarded message ----------
Date: Mon, 28 Oct 1996 08:39:15 -0800
From: Asaf Mohr <>
To: VON Mailing List <von@Pulver.COM>
Subject: [VON]: Investment in VDOnet by Microsoft and US West Interactive


I am very pleased to let you know of two major endorsements of VDOnet Corp. which are being announced today:
both Microsoft Corporation and US WEST Interactive Services have invested in VDOnet and are working with us on technology cooperation.

Our close work with Microsoft will accelerate the development of Internet
video application and standards. In addition, our relationship with US
West Interactive Services, one of the world's largest cable operators, will
significantly speed up the arrival of high quality video communications
over wide bandwidth Internet connections. Together with Microsoft, US
West Interactive, and other industry leaders, we plan to quickly bridge the
gap from the Internet as we know it today into a video-rich media network.

With our unique scaleable video technology and major partners behind us,
VDOnet's customers and partners are best positioned to provide Internet
video today, and tomorrow.

I would like to thank you for the ongoing interest and support of VDOnet Corp.
We have great challenges ahead, but I believe that we have just crossed
an important milestone on the road for fulfilling the vision of VDOnet.

Asaf Mohr
President & CEO

Microsoft Invests in Video Leader VDOnet;

Strategic Relationship a Milestone for Internet Communication
Video Technology to Serve as Foundation for Future Multimedia Applications
on the Net

REDMOND, Wash., and PALO ALTO, Calif. - Oct. 28, 1996 -- Microsoft Corp.
and VDOnet Corp. announced today that Microsoft has purchased an equity
stake in VDOnet, and that the companies have entered into a licensing
agreement regarding key Internet communication technologies. The
relationship between Microsoft and VDOnet represents a major milestone for
Internet communication.
. Breakthrough technology. VDOnet's breakthrough VDOWave(tm) technology
rounds out the foundation of video, audio and data sharing that will bring
rich multimedia communication to the mainstream.
. High-quality video. Optimized for communication over low-bandwidth
connections, this technology provides both video-conferencing and
video-broadcasting applications. It brings the high-quality video
capabilities that will further the evolution of the Internet into an
effective medium for reaching out to and working with others.
. Video standards. To help ensure that this technology leads the industry
toward ubiquitous communication over the Internet, Microsoft and VDOnet
will continue to work closely with other industry leaders to further video
standards for delivery over the Internet.
Also announced today is that US WEST Interactive Services, a division of
US WEST Media Group (NYSE: UMG), has purchased an equity stake in VDOnet
Corp. (see separate press release).
"Microsoft has been actively evolving technology and products to make
communication over the Internet a valuable experience," said John Ludwig,
vice president in the Internet platform and tools division at Microsoft.
"After substantial study, we concluded that VDOnet and its technology will
complement our efforts and play a vital role in the future of network
VDOWave was built with the special challenges of the Internet in mind.
The Internet and intranets are made up of complex webs of very narrow,
uneven pipes - any video running through them must be compressed to a very
small size. Data can be lost easily in this environment, resulting in a
decrease of video quality. VDOnet's technology addresses these challenges
by combining sophisticated communications protocols with advanced
compression techniques.
In addition to its investment, Microsoft will hold a seat on VDOnet's
board of directors, and VDOnet and Microsoft will continue to collaborate
on solving the technical challenges inherent in evolving video-streaming
technology standards. Specifically, the companies will work together to
support and drive standards efforts, including H.323 for standards-based
audio and video conferencing and future generations of the MPEG standard.
As part of its new relationship with Microsoft, VDOnet has licensed key
Internet multimedia technology from Microsoft - Microsoft? NetMeeting?
conferencing software and NetShow. NetMeeting 1.0 is a standards-based,
data conferencing product that supports application sharing with one or
more other users and real-time voice communications over the Internet and
corporate intranets. With NetMeeting, multiple users can share
applications, transfer files, chat, and share a whiteboard and the
clipboard. NetMeeting 1.0 also allows users to perform point-to-point
audio conferencing. The first beta version of NetMeeting 2.0, currently
available, incorporates support for H.323 standards and allows audio
conferencing with one or more other users.
Microsoft NetShow is an open, standards-based software platform for
network multimedia applications. It provides live multicasting of audio
and on-demand streaming of stored audio, illustrated audio (audio
synchronized with images), and video. NetShow enriches one-to-many
communication through Internet and intranet sites using live and stored
multimedia content. NetShow is an extensible platform enabling third
parties, such as VDOnet, either to provide compatible add-ons such as
codecs and authoring tools or to augment their own products with NetShow
functionality. It harnesses bandwidth-efficient Internet technologies and
the power of the Windows NT? Server network operating system to transform
information sharing into a richer and more effective medium, the network
"We have always believed that providing video on the Internet is both a
very important and a very complex challenge to meet - a challenge that
requires development of new, advanced technologies that are combined with
standards and existing technologies," said Asaf Mohr, president and CEO of
VDOnet. "We believe this relationship with Microsoft will help us continue
to work toward realizing our vision for the potential of video on the
VDOnet Corp., based in Palo Alto, Calif., has developed and markets
technology and products enabling Internet video broadcasting (VDOLive?) and
video telephony (VDOPhone?) on the Internet and over regular telephone
lines and private networks. Today, VDOLive is being used by hundreds of
companies as well as CBS News, PBS, Preview Media, corporate intranet users
and many others. The VDOPhone is available as a standalone commercial
product and is available through OEM (original equipment manufacturer)
relationships with Packard Bell Electronics Inc., Diamond Multimedia
Systems Inc. and others. VDOnet was founded in 1995 and today has offices
in the United States, Israel and Japan. Its investors are Microsoft Corp.,
US West Media Group, NYNEX, Battery Ventures and private sources. VDOnet's
URL is
Founded in 1975, Microsoft (NASDAQ "MSFT") is the worldwide leader in
software for personal computers. The company offers a wide range of
products and services for business and personal use, each designed with the
mission of making it easier and more enjoyable for people to take advantage
of the full power of personal computing every day.


Internet Video Gets Boost from Two Investments in One Day

Palo Alto, CA -- October 28, 1996 -- U S WEST Interactive Services, a
division of U S WEST Media Group (NYSE: UMG), has purchased an equity stake
in VDOnet Corporation, the companies announced today. VDOnet is the leader
in video for the Internet. U S WEST Interactive joins Microsoft
Corporation (NASDAQ: MSFT), which also announced today it is investing in
VDOnet and has established a technology licensing agreement with VDOnet
(see separate press release).
"We are excited about our investment in VDOnet," explained John O'Farrell,
president of U S WEST Interactive Services. "The cable modem services we
are now providing to customers enable a vastly superior Internet
experience, not just in terms of higher speed, but also in terms of new
media-rich applications. We expect video and audio to be key elements of
these applications, and VDOnet is the leader in this field."
According to O'Farrell, it is the unique scaleability of VDOnet's
technology, which adjusts based on network speed and capacity, that
perfectly suits it to the inevitable market expansion from today's
low-speed phone-line modems to the higher bandwidth provided by cable.
Additionally, explained O'Farrell, content providers who have made or plan
to make investments in video-rich content need not fear obsolescence. "As
we provide cable bandwidth, the video quality and speed of delivery
automatically improves," he said. "This sets VDOnet apart, and is pivotal
to our strategy."
That strategy also includes becoming the third largest cable company in
the United States, an event which will occur upon completion of U S WEST
Media Group's merger with Continental Cablevision. U S WEST Media Group
also owns a 25% stake in Time Warner Cable. "U S WEST Media Group and its
cable partners are already leaders in cable network upgrades and cable
modem deployment," said O'Farrell. "Subsequent to the merger, our
subscriber base will exceed 26.2 million homes in 60 of the nation's
largest cable markets. And to each of these homes," he added, "we wish to
provide access to the richest content and communications applications the
Internet can deliver."
To further this goal, U S WEST Interactive has taken an aggressive posture
in the Internet content marketplace, forming equity-based partnerships
with SportsLine USA, Preview Travel,, and The since July
of this year. Additionally, the group is a limited partner in a venture
capital fund aimed at Java technology-based companies.
In addition to its investment in and strategic relationship with VDOnet,
US WEST Interactive will hold a seat on VDOnet's board of directors.
Asaf Mohr, president and CEO of VDOnet, stated, "U S WEST Media Group and
VDOnet also share a common vision. It won't be long before you can watch
your child's football game live from across the country, sit in on a
lecture series from London, England, at your home in Denver or in
Australia, or make a high-quality video call to a friend across the cable
network." Added Mohr: "Today's two investments in VDOnet bring this day
dramatically closer."
VDOnet offers VDOLive products for Internet video broadcasting and the
VDOPhone (software-only full-color video conferencing for the Internet,
intranets, and regular phone lines.) Video-on-demand and live video content
via VDOLive are already in use by several million users, reports Mohr, and
the VDOPhone is currently available to hundreds of thousands of people, and
its use is growing.
U S WEST Interactive Services is part of U S WEST Media Group, which is
involved in domestic and international cable and telephony, wireless
communications, and directory and information services. For 1995, U S WEST
Media Group reported proportionate revenues of $5.1 billion. Through
strategic investments, U S WEST Interactive Services is working to create
partnerships with world-class Internet companies delivering and enabling
locally focused information and services that complement U S WEST Media
Group's extensive national and international distribution.
VDOnet Corporation, based in Palo Alto, Calif., has developed both
fundamental technology and compelling products for video broadcasting and
video telephony over computer networks of any bandwidth, and for use over
public internets or private intranets. Today, VDOLive is being used by
hundreds of companies, including CBS News, PBS, Preview Media, corporate
intranet users, and many others. The VDOPhone is available both as a
standalone commercial product, and bundled with products offered by Packard
Bell, Diamond Multimedia, and others. VDOnet was founded in 1995 and today
has offices in the U.S., Israel, and Japan. Its investors are Microsoft
Corporation, U S WEST Media Group, NYNEX, Battery Ventures, and private
sources. VDOnet's URL is

Asaf Mohr
President & CEO
VDOnet Corp.
Tel (USA): 415-846-7700
Tel (Israel): +972-9-747-3838