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Microsoft, PacketVideo Extend Delivery Reach

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From Reuters

Microsoft Corp. said Monday that PacketVideo Inc. has agreed to use its digital media delivery format, in a deal that gives the software giant a key foothold into the nascent market for mobile multimedia content delivery.

PacketVideo, which had previously been seen as a key Microsoft rival in the race to bring rich video and audio content to mobile phones and mobile devices, said that the deal with Microsoft would help expand its range of customers.

PacketVideo, a privately held company based in San Diego, develops software to send and receive video and audio over wireless networks, one of the key selling points for third-generation mobile phone services.

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Microsoft, eager to extend the reach of its software beyond the desktop, has been pouring resources into developing software to send and receive content such as news, music and sports clips to a variety of devices.

While cross-town digital media rival software maker RealNetworks Inc. has a slight lead in the market for its desktop media player, Microsoft has been trying to get its software into a variety of devices.

“This is an extension of the strategy we’ve had,” said Michael Aldridge, lead product manager at Microsoft’s Windows digital media division.

PacketVideo will offer the Windows Media 9 Series format alongside its own proprietary wireless content delivery format.

“Our customers are asking for support for Microsoft,” said PacketVideo President and Chief Executive James Brailean.

Microsoft is set to release Wednesday the beta version of Windows Media 9, its latest digital streaming format formerly code-named “Corona,” along with new delivery and playback software.

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One of the challenges facing wireless carriers hoping to deliver video and audio over 3G networks is the multitude of handsets and software that have to be able to play digital video streams.

PacketVideo already is deploying its technology in Japan through NTT DoCoMo Inc., Japan’s largest mobile phone carrier and pioneer for 3G services.

Although 3G services are up and running in Japan, U.S. wireless carriers have yet to launch full-fledged 3G networks and services, causing some to question whether Microsoft and PacketVideo might be jumping the gun.

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