Analysts speculated that HP might be planning its entry into the market for set-top boxes, which commonly run on Linux. The device will connect to the television, surrounding stereo equipment, and the Internet, with the TV working as the user interface. Jay Jaisimha, group manager of consumer appliances for RealNetworks, said the partnership expands on an alliance in which RealNetworks' server-grade software is bundled with servers HP sells to online content broadcasters. In addition to the bundled software, Jaisimha said RealNetworks, Seattle, will suply HP with access to Real-formatted content from more than 1 million websites. HP also will gain access to RealNetworks installed base of 180 million registered users.
Analysts say the relationship makes perfect sense given the two companies' complementary strengths.
The living room is the first big beachfront beyond the desktop. Gartner's P.J. McNealy said HP, Palo Alto, Calif., is responding appropriately to the shrinking demand for PCs.