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Faced with the threat of losing a high-profile customer, Real Networks has reached a new agreement with Yahoo! that will keep the RealPlayer as an option on Yahoo! Broadcast's radio station page, according to a well-placed source.

The agreement, signed late last week, halts Yahoo!'s (YHOO) plan to offer its live, streaming media feeds of more than 400 radio station affiliates almost exclusively in Microsoft's (MSFT) Windows Media format.

RealNetworks (RNWK) shares plunged nearly 16 percent last Thursday on news of the switch to Microsoft, despite assurances from Real that its relationship with Yahoo! was strong.

Officials from Yahoo! and RealNetworks declined comment on the new agreement.

While Yahoo! spokesperson Sherri Manno categorized reports last week of the company's switch to Windows Media as "rumor and speculation," station managers from several Yahoo! affiliates confirmed that the company had notified them about the impending cutover, which was to take place before the end of the year.

Evidence of a change is also apparent at the Yahoo! Broadcast site, where a listing of new radio station affiliates revealed that almost all are available only in Microsoft's streaming audio format, although a few also offer RealAudio streams directly from their own sites. When it launched as AudioNet in 1995, Broadcast.com relied exclusively on RealAudio technology to stream its aggregated content. Broadcast.com was acquired by Yahoo! in July.

Yahoo! has made no secret recently of its unhappiness with Real's server pricing. In a keynote address at the Streaming Media West conference earlier this month, Yahoo! Broadcast head Mark Cuban criticized Real for playing one company against another when negotiating the fee it will charge for hosting media streams.

Yahoo! may have used the threat of switching stations to Windows Media as a way to pressure Real to the table on key points such as server licensing fees. Microsoft bundles its Netshow server software for free with Windows NT, while Real charges license fees starting at $1,995 for its 60-stream RealServer Plus. The company does not publish the cost of its high-capacity RealServer Professional.

While the new agreement may put RealNetworks investors and RealPlayer users at ease, one station manager at a Yahoo! Broadcast affiliate accused Yahoo! of using him and other stations as pawns in a high-stakes negotiation.

"My listeners are completely confused and I am completely confused," said Ken Freedman of WFMU in East Orange, New Jersey, which has been a Yahoo Broadcast affiliate since 1997. "I was told by several people at Yahoo! that the plug was going to be pulled on all the RealAudio streams, and now I find out that it was a clear attempt at manipulating the public and the stations and Real."

Freedman said he has received no confirmation from the company that it will continue to serve WFMU's live satellite feed using RealAudio.

Another Yahoo! Broadcast affiliate, WCPE-FM in Wake Forest, NC, is currently polling its online listeners for their views regarding the switch to Windows Media. Respondents oppose a change by a margin of more than three to one.