Microsoft Opens Windows Media 9 Codec to SMPTE

Microsoft's Strategy
This extension to other platforms and purposes is a key goal of Microsoft's media strategy. While the range of devices that create and play back media of all kinds is growing to include cell phones, PDAs, consumer electronics devices, and more, Microsoft is keen to have its technology become ubiquitous beyond the PC platform. Since Microsoft cannot seed the non-PC marketplace with its products the way it can with Windows "preloads", it's been forced to consider a shift in strategy--to play by the industry's rules, which revolve around standards.

Adoption as a standard could create the stability and industry technical approval needed to make the WM9 format viable in the film, broadcast, and consumer electronics marketplace. What’s more, by placing Windows Media everywhere in the broadcast and consumer electronics arenas, Microsoft would make the Windows PC more at home as the center of the consumer's media environment. As is the case with many media compression standards, including MPEG2 and MPEG4, companies wishing to build SMPTE/WM9 technology into their products would still pay a license fee to the patent owner. For example, manufacturers can expect to pay the MPEG Licensing Authority around $3 per MPEG2 encoder or decoder they sell. With an estimated 400 million MPEG2 decoders embedded in TV set-top boxes, DVD players, PCs, and other devices, the numbers can add up fast. Add to that the few-pennies license fee for every DVD sold, and it's clear why Microsoft would want a place in this market.