• by Kate Kaye , January 9, 2003

Thanks to Java, the promise of distributing streaming audio and video ads that require no plug-in player and can be experienced by nearly all of the target audience has been fulfilled – or has it? Recent developments in the ongoing battle between Sun Microsystems and Microsoft over fair practices regarding Sun’s Java platform have stirred confusion and concern.

Firms such as EyeWonder, Klipmart and Bluestreak rely on Java being enabled within a browser in order for their streaming technologies to work, rather than requiring plug-in players like Microsoft’s Windows Media Player or Apple’s QuickTime. The thing is, if Microsoft has its way, the Sun Microsystems technology could lose its footing in the marketplace, eventually driving down the high penetration of Java among US Internet users, and in turn, advertiser usage of Java-based streaming technologies.

This particular bout began back in April of 2001, when Microsoft decided not to include Java with its Windows XP-integrated Internet Explorer 6 browser. A federal judge ruled late last month that Microsoft must include Java on the Windows operating system, and now Microsoft plans to appeal that ruling. An attempt to clarify what this means for Java in Internet Explorer garnered a “no comment” from a Microsoft spokesperson.

EyeWonder, whose clients include Ford, GM and Disney, claims that currently about 97% of users receiving its streaming media ads can support Java, an increase from an average of 95% in 2001. Among other things, CEO John Vincent chalks it up to more support of Java within the enterprise marketplace which greatly affects at-work Web surfers.

Affirms Vincent, “Java is still so ubiquitous and creating such a good user experience, that we’ll continue to use it.”

Other lines of defense that could obviate a potential Java drop-off include installation by computer manufacturers like Gateway and Compaq and user-initiated installation.

Despite these factors, Microsoft’s anti-Java actions have created negative perceptions of Java-based streaming technologies among some advertisers and agencies. “When XP didn’t enable Java, it cast a big shadow,” says Karim Sanjabi, CEO of Freestyle Interactive. Still a proponent of Java, in the end Sanjabi doesn’t really care what technology is employed, “as long as the video looks good and works well.”

Bluestreak director, product management, Eric Picard, has seen the number of Java-based streaming ads served by its ad serving platform (both Bluestreak and non-Bluestreak enabled) go “way down” compared to what he believes was the peak about a year and a half ago. He attributes this to “lots of press about Microsoft not supporting Java.” However, Picard agrees that Bluestreak’s own shift in focus from its streaming technology services to its ad serving business has also played a role.

When asked whether his clients have expressed concern over Microsoft’s Java brush off, Klipmart CEO, Chris Young, responds, “I’ve gotten that question maybe twice in a hundred meetings.” If Klipmart’s growth of 400% in Q4 2002 over Q3 2002 is any indication, the use of Java-based streaming technologies by advertisers is hardly faltering.

A November 2002 Jupiter Research report on ad technology vendors predicts that all forms of streaming ads will comprise 6% of market share of online ad formats in 2005 and 12% in 2007.

Gary Stein, marketing and advertising analyst at Jupiter Research, comments, “I think advertisers are interested in streaming and Java represents a great opportunity for them. Most people figure the lawsuits will figure themselves out.”

Although the major players continue to express confidence in Java, they aren’t letting that stop them from researching alternative platforms for streaming media distribution. Some advertisers are also forsaking Java for other technologies, namely Macromedia Flash. Is Flash poised to rival Java in the non-plug-in streaming media space? Find out in part two of this series, coming soon.