Microsoft Has Big Plans in the Online Video Space

While Google, Yahoo! and AOL are focused on advertising-based business models around online video, Microsoft is advancing into the area it knows the best; software and services. Seeking a big piece of the emerging field for video streaming and the demand for HD video, Microsoft is expanding the ecosystem for Silverlight, the new rich-media Web plug-in.   

On Tuesday, Microsoft and Akamai announced a program to provide dynamic web video streaming -- providing high quality video in Silverlight matched the user's Internet connection and computer processing speed.

In Manhattan on Tuesday, Microsoft's Eric Schmidt participated in the Beet.TV Online Video Roundtable.  After the session, Eric spoke with Kelsey about the plan with Akamai and Microsoft's plans dynamic streaming of HD content.

Although Microsoft might not have the glitz in the online video scene, the software behemoth might actually turn this into a big business.  As Robert Scoble writes in his blog today, "Never underestimate Microsoft's ability to turn a corner."  We agree.

Here's a round-up in Ars Technica of the big Microsoft developers conference this week in LA.

Update: 11/3 Concerning bandwidth demands and online video, check out this report by Saul Hansell in a post on Bits.

-- Andy Plesser, Executive Producer