Is RealNetworks too late to the Linux netbook party, or positioning itself wisely for a second wind? That's the question after the Seattle-based digital media company this morning announced a series of deals with Linux vendors to put its RealPlayer software on netbooks -- small, Web-oriented computers that have been steadily rising in popularity.

RealNetworks' agreements with Canonical, Xandros, Phoenix Technologies and DeviceVM include native Linux netbooks and Linux-based "instant-on" operating systems that can run on top of Microsoft Windows-based netbooks. Linux once ruled the netbook market, but Microsoft has come from behind, in a big way -- with recent NPD data putting Windows at 98 percent share of the netbook market in the U.S. [Note: Link and data updated since original post.]

The percentage of Windows on netbooks isn't as high worldwide, but it's still a sharp reversal. However, it isn't necessarily a permanent trend, said Rishi Mathew, director for RealPlayer on mobile devices.

"The early Linux netbooks shipped with all these unfamiliar applications and an unfamiliar interface. It turned consumers off from usng Linux netbooks," Mathew said, noting that computer makers and operating-system vendors have learned from that experience.

"By partnering with us to provide a RealPlayer on these devices, it futhers the argument in favor of these Linux netbooks," he said. "So we are hopeful that there will be a turnaround, that there will be a second coming for Linux netbooks."

[Update: RealNetworks notes that it isn't betting solely on Linux-based netbooks with these deals. The Xandros, Phoenix and DeviceVM agreements are all for "Instant-On" Linux operating systems that run on top of Windows-based netbooks.]

The big British computer retailer, PC World, sees things differently. It announced plans this week to feature Windows on all of the netbooks sold in its physical locations, although Linux will still be available on netbooks in its online store.

“Despite initial hype that netbooks would move more users onto the Linux platform, Microsoft has emerged as the preferred operating system because Windows makes it easier to share content, and provides customers with a simpler, more familiar computing experience on the move," said PC World's Jeremy Fennell in a news release announcing the decision.

Financial terms of RealNetworks' licensing deals with the Linux vendors weren't disclosed. The agreements differ from RealNetworks distribution strategy on Windows PCs, which is based primarily on direct installations by end users.

RealPlayer is as a universal media player, capable of playing back Windows Media, AAC, MP3, and a variety of other codecs, in addtion to RealMedia. Under normal circumstances, the operating system vendors would need to license each of those codecs, but RealNetworks offers a "one-stop-shop codec licensing solution" that aggregates all of them under a single, less-expensive license.

"That is core to our value proposition," Mathew said. "That's why we are seeing a lot of traction with our offering."