As widely anticipated, (CI No 3,210) Microsoft Corp has put its hand in its pockets once again and bought internet streaming company VXtreme Inc, for a rumored $75m, confirming its move into the media streaming sector. Coinciding with the announcement, Microsoft also announced the availability of NetShow 2.0, its streaming media server. Microsoft says that both the acquisition and product release form a key part of its streaming media strategy, and VXtreme says the merger of the company with the software giant will boost its own strong development framework with Microsoft’s marketing muscle. Sunnyvale, California-based VXtreme’s, technology will be integrated into future releases of Microsoft’s NetShow and into its Site Server electronic commerce package. NetShow 2.0, which is available as a free web download until the end of the year, enables the streaming of production- scale video, audio, and audio with synchronized images over the internet and corporate intranets, and the company says it is powerful, easy to use and of a high quality. The move could be a worrying one for VXtreme competitors, particularly Progressive Networks Inc of Seattle, Washington, although Progressive also received a Microsoft endorsement recently (CI No 3,208).
