Microsoft's big swing and a...

Miss, home run? Time will tell, but investing in Move Networks was an extremely strategic push in the right direction for the following reasons:

• Entrance into existing accounts that Move Networks holds (ABC, Fox, Discovery, The CW) plus international properties
• Integration of Move Networks into Silverlight; giving Microsoft adaptive video playback that is CDN agnostic very early in the game relative to the age of their platform
• "Acquisition" of Move Networks team to work on video initiatives while allowing Silverlight team to focus on the core platform
• Open door to explore buying significant portion of Move Networks
  

What is really intriguing about this investment is that with all of the buzz about P2P companies delivering cost reductions the "major" players in the space do not seem fully bought in. Move Networks is not a P2P play, so I assume that as Microsoft assessed the landscape and current state of policy they determined it was better to stick with a company that supported the existing online delivery content value chain (CDNs, ISPs, etc) instead of breaking off into new territory.

The Move Networks investment is not without risk however as many companies are looking to challenge Move's value (not the least of which, Adobe). Move Networks must continue to innovate to outpace competitors and stretch the net benefit that their customers see from a client side plug in. This could include additional metrics or products that drive further monetization of content (ala Ooyala).

Move Networks is currently streaming the Democratic Convention in HD.