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.

It’s interesting to consider the Move-Microsoft relationship in the context of larger working relationships with CDN Limelight, design firm Schematic, as well as Disney, FOX and a number of other mainstream media companies. Together these powerbrokers have formed something of an oligarchy in online video player development and content delivery which could become a front for Microsoft and other Adobe competitors.

The Democrats have teamed up with Move Networks to offer an HD Silverlight experience at this year’s National Convention which unlike NBC’s 2008 Olympics player, showcases the power of Silverlight as a platform.

Above: DNCC Video Experience Homepage Player

While the excitement of the DNC may not rival the Olympics, the player offers an awesome full screen 16:9 experience, two camera angles and a separate spanish broadcast, (though that one taps into Comcast’s lower quality 4:3 feed) leaving NBC’s player in the dust. If you’re just looking to watch the convention, look no further.

Above: DNCC Move Networks Player - Full Screen in 16:9 HD

If you’re looking for commentary and independent coverage, all the major online video live broadcast companies are partnered with most of the new media sources that have sprung up over the past four years and are now offering their own live feeds. The democratization of media is pretty cool, PaidContent and NewTeeVee have pretty good lists, though there are almost more independent live streams than we can count.

Move Networks today announced they will upgrade their analytics and reporting tool ahead of the 2008-2009 television season. Move Monetize 2.0 will include:

•Improved Viewership Reports

o     Create reports showing details on partner site, screener and ad campaign viewership.

o               View information on the number of unique viewers watching an Internet television program for time periods ranging from minutes to years.

o     Capture information on drop-out points, rewind activity and click-throughs

•Improved Program Reports

o     Secure viewership details on a particular program, program episode, or even episode segment

o     See which programs are being watched on which days, at which times, in which geographical areas.

•Improved Streaming Reports

o     Learn the Bit rates and Gigabits served by the Move Media player, as well as the quality of service, quality of experience, and the cost of service.

•New “Top” Lists

o     Quickly view top programs, episodes, viewing days and times, locations, bit-rates and affiliates.

•More Custom Reports

With such specific data at the disposal of network executives, who needs Nielsen?

In case you couldn’t make it, here’s what you missed. Presenters included Hulu’s Kevin McGurn, Move Networks’ Bob Bryson, Boxee’s Avner Ronen, MediaMerx’s Tejpaul Bhatia,and Matt Cutler from Visible Measures.

Sad but true. Tonight is the season finale for Lost, and what a season it has been. But that’s not important right now. What is important is what ABC is doing to make their online viewing experience as good as - maybe even better than - TV.

Last week, ABC announced their new video player for the fall, powered by Move Networks, as is their current version. While we’re eager to get a crack at the beta player (hint hint, ABC.com PR folks), their current player is currently the king of the hill.

So before you sit back tonight for the two-hour finale, catch up on anything you’ve missed (minus the pop-up-video-style Cliff’s Notes on the repeats on TV) on the ABC.com site. They’re leveraging a powerful combination of Move Networks content delivery with on2 Technology’s VP7 codec.

At the Streaming Media East conference last week, I had the chance to spend some time with Eero Kaikkonen, CMO of on2. on2 acquired Hantro Products, a video compression software and solutions company, in May of last year. Eero and I spoke at length about codecs and the user experience, where convergence is headed, and the features and functionality that mobile devices will need before they hit their true tipping point. Phones, digital cameras and digital media devices (read: iPods and Zunes) will all need high quality audio and video capture capabilities, plus built in hardware encoding and decoding, so you can plug your iPhone into a 50″ TV and enjoy a high quality, lean-back experience. According to Eero, we’re still a good 2-3 years away before we start to see that technology make its way into consumers’ hands.

So while you wait, plug in your laptop or media center PC to your TV, fire up the ABC.com player, and enjoy the highest quality streaming video available right now. And remember, those few pre-rolls and mid-rolls make it all possible. So don’t forget to thank those advertisers. There’s probably only one for the whole show, so we’re not asking for much.

On the heels of announcing a $46 million series C funding round, Move Networks has released some of their plans. The company has opened offices in New York, Ann Arbor, San Mateo and Los Angeles and will open offices in Latin America, Europe, and Asia later this year.

Additionally, the company hired Paul Ptaschne to lead the company’s Latin American sales force and hired BlackArrow founder Tom Morgan as Chief Strategy Officer, strengthening the company’s already close ties with their ad management partner.

An international presence would give Move a major competitive advantage when dealing with traditional content companies and the complexities of international distribution rights.

The internet should at least in theory simplify international online content distribution. So far however, broadcasters have been very careful not to encroach on existing agreements with international syndication partners. Hulu is a prime example.

But once there is a framework for syndicating content internationally, so that it can be monetized in cooperation with U.S. networks’ international distribution partners, that will change the global content syndication game.

Can I get an Amen? I can from the Wall Street Journal’s Ethan Smith, who today spotlights the debut of PluggedIn Media, a service offering “free near-DVD-quality music videos licensed from three of the four biggest music companies, along with information about artists and links to buy merchandise and concert tickets.”

Most importantly, Ethan and PluggedIn Chief Executive Jeffrey Somers are hitting home the fact that while user generated content gets most of the buzz, professional produced content is where users are most engaged, and where advertisers want to be.

The site is powered by Move Networks technology, who yesterday announced an influx of an additional $46 million in cash.

It’s been no secret that we believe in professionally produced content being critical to having a real online video business model. While the u-gen sites continue to make it easier and easier to upload and share videos, there is very little focus from that community on revenue generating strategies. Companies that had built models around monetizing user generated content - like VideoEgg and Revver - have either shifted their focus towards more viable revenue streams or have essentially been taken behind the woodshed.

FunnyOrDie has been a perfect example of leaving funny to the pros. The latest addition is this fake PSA for The McLovin’ Fund.

Move Networks announced today that they have raised a $46 million Series C round, bringing the total raised since Dec ‘06 to more than $91 million nearly $70 million. Move currently powers full-episode players for FOX, ABC, Discovery the CW and Oprah.

What will they do with the money? Other than the vague subtitle that “Additional Capital Will Accelerate the Delivery of High Quality Online Television to Tens of Millions of New Users Worldwide,” the press release provides little insight.

Much of the money will be likely put to use improving network reach and infrastructure so the next time Oprah gets 500,000 concurrent viewers it goes off without a hiccup. And the company will likely bolster its sales and engineering staff enabling them to provide better support and additional services for their existing large clients.

Said Bill Gurley, general partner at Benchmark Capital, which led the round:

Move offers a unique and obvious quality advantage compared to other video delivery options. The best brands with the best content want full control of their experience and their advertising relationships. The Move platform is the only choice on the market that optimizes this strategic imperative.”

Other investors included Cisco, Comcast Interactive Media, and Televisa in addition to Steamboat Ventures and Hummer Winblad Venture Partners which have been involved in every funding round.