RealNetworks Inc. Thursday teamed with WebGlide to integrate its computer generated video technology and e-shopping solution into RealNetworks' RealSystem G2 to create a new product, named Utopia.

Utopia delivers computer generated video requiring less than 1/20th the bit rate required for conventional video.

Utopia was demonstrated this morning during a keynote at Streaming Media West by RealNetworks' Chief Executive Officer Rob Glaser.

"High quality computer generated video has become a mainstay in Hollywood special effects for several years. Now, for the first time, 'Utopia' will bring that same fundamental technology into the Internet mainstream," Glaser said.

"We are truly excited to be joining forces with WebGlide to integrate their ground-breaking CGV technology into RealSystem G2 and to deliver the results to tens of millions of Internet users around the world."

"We are thrilled with our alliance with RealNetworks (RNWK), the pioneers and leaders of the Internet media delivery industry, who will enable us to expand the reach of our technology to millions of users" said Tal Kerret, co-founder and CEO, WebGlide.

"The combination of our products, featuring patent- pending, award-winning 3D graphics technology, with RealSystem G2 will take WebGlide's CGV technology and e-commerce solutions to the next level and enable us to effectively expand our unique capabilities into exciting new application areas."

The companies also announced that RealNetworks (RNWK) will make a minority investment in WebGlide and that Glaser will hold a seat on WebGlide's board of directors. The companies will be working together with content and application partners to create beacon applications that take advantage of this technology, such as entertainment, e-commerce, advertising, and electronic greetings.

WebGlide's three-dimensional computer generated video renders video of interactive animated environments, creating photo realistic results, which users can watch linearly or interact with. WebGlide has a three- pronged approach to streaming CGV; first, it enables the use of low-cost synthetic video created using standard authoring tools such as Autodesk 3D Studio MAX in combination with a WebGlide encoder and synchronization tool. Second, it provides streaming computer generated video with relatively little bandwidth consumption. Finally, WebGlide delivers a new user interface -- the Natural User Interface (NUI) which simplifies 3D navigation and playback.

"Interactive animated environments will take the Web to a whole new level and a much broader audience," said Carol Bartz, CEO of Autodesk (ADSK).

"The RealNetworks and WebGlide solution will bring a new and exciting customer experience to the Internet and we are thrilled to provide the most popular 3D web animation tool for this authoring environment."

WebGlide will work with RealNetworks to integrate its computer generated video solution, via a next-generation client/server plug-in, code named "Utopia," for RealSystem G2. WebGlide's CGV technology will take advantage of the standards-based RealSystem G2 architecture, including SureStream for end-user playback. Customers will also be able to use Synchronized Multimedia Integration Language (SMIL)-based layout for synchronizing the creation and combination of multiple data types, such as RealAudio, RealVideo, RealText, RealPix and Flash.

RealNetworks and WebGlide plan to make available the beta release of "Utopia" for Windows and Macintosh users in the first half of 2000.