Only about 4.5% of U.S. cellphone users watch video on the small screen, generally in the form of two-minute streaming clips, according to comScore Inc.

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It's hard to watch those ubiquitous YouTube Web clips: They arrive as streaming video directly from the Web and aren't downloadable.

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But nine months later its archrival RealNetworks announced that it had secured a four-year deal with the studio, AOLTime Warner's New Line Cinema, to distribute new trailers and video clips using RealPlayer, Real's streaming video software.

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When users aren't streaming, Looxcie's unique Instant Clip button lets people capture "instant replay" clips of what just happened.

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