Posted by : Randy Cooper in (CDN)

Microsoft Buys Into Move Networks; Tries to Exit Avenue A

On the same day rumors circulated that Microsoft is seeking to offload Agency Avenue A Razorfish to WPP, they announced a strategic investment with Move Networks. Both of these are very good moves.

Say you’re Microsoft, the former king of the software biz which is trying to stay relevant as digital invades and transforms media. Old enemy Apple is encroaching on core businesses, won by focusing on usability. Google has beaten them by aggregating global audiences and changing how ads are sold.

What Microsoft lacks focus, they make up for in talent and critical core competencies like scale, global reach and relationships with multi-billion dollar corporations. Microsoft must reassert itself by positioning Silverlight and other key products as the technologies used by mainstream media and major corporations.

By investing in Move, Microsoft gets a partner with which to push their NextGen video technology to major media. Among its partners Move counts ABC FOX, and a growing number of international broadcasters. While currently most Move partners use ON2’s VP7 codec, there’s no reason they couldn’t switch to Silverlight and VC-1 at any time.


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