Microsoft in its latest enterprising endeavor has jumped into the online video investment space, and has made a strategic investment in already-heavily backed online HD video tech provider “Move Networks,” for an undisclosed amount, in a move to broaden the reach of its video streaming technology.
The investment took place nearly five months after the two companies struck a strategic partnership. In March, Microsoft said it would start backing-up Move Network’s video streaming technology within its own cross-browser video platform, Silverlight, which allows publishers to customize navigation and ads.
According to Monday’s deal, Move Networks said it will extend support to Windows Server-based encoding, Microsoft video-compression technology (codecs), and Silverlight’s digital rights management (DRM).
The company pushes for a superior level of excellence than other video providers, including HD, and it claims to be able to eliminate buffering. The deal also indicates continued momentum for Move Networks, a supplier of high-definition video-delivery technology to publishers including ABC, Discovery, ESPN, and Fox, and it recently announced it was going to adapt its HD media player for mobile Internet devices (or MIDs) using Intel processors and Linux software.
“Microsoft’s Silverlight technology helps our customers add navigation and branding elements to their Internet television programming,” Move Networks CEO John Edwards said, in a statement.
Also this week, the Democratic National Committee will use Microsoft’s Silverlight technology and Move Networks’ services to deliver live video to viewers from its 2008 convention in Denver, at DemConvention.com, with network services provided by Level 3 Communications.
Jointly, the two technologies let publishers deliver “skip-free” TV programming online with customizable navigation, according to the companies.
“Our close relationship with Microsoft demonstrates their confidence in our ability to unlock the tremendous potential of Internet television for audiences, media owners, advertisers, and service providers,” Edwards said in a statement.
In April, Move Networks, raised $46 million from a stellar lineup of investors, including Benchmark Capital, Cisco Systems, Comcast Interactive Media, Steamboat Ventures, and Hummer Winblad Venture Partners. Prior to Microsoft joining in, the American Fork, UT-based Company had raised $67.3 million in funding.
Microsoft has been pushing its Silverlight online video technology. It was recently integrated within Move’s technology, even though it was not used in NBCOlympics.com’s video player, which was all Silverlight.