Microsoft Unites Software and Cloud Services to Power New TV Experiences

Version 2.0 of award-winning Mediaroom TV platform enables subscription TV providers to deliver more entertainment content to more types of screens, using a single cloud-based infrastructure.

LAS VEGAS, January 7 - Today at the 2010 International Consumer Electronics Show (CES),
Microsoft Corp. is announcing Microsoft Mediaroom 2.0, the next version of
the world's most deployed Internet Protocol Television (IPTV) platform.
Mediaroom 2.0 will enable television service operators to provide their TV
services to more subscribers than ever before, delivering more content to
more screens than the previous version of Mediaroom - both inside and outside
the home.

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Mediaroom 2.0 is scheduled to be available for operators to start testing
beginning next month. Mediaroom 2.0 can be deployed by operators as their
entertainment cloud powering the delivery of a complete television service,
including cloud digital video recording (DVR), on-demand features,
interactive applications, and access to both operator-hosted content and
externally hosted content such as Internet TV. The operators' service can be
enjoyed by their subscribers on multiple screens including the TV (with
Mediaroom set-top box), Windows Media Center, Web browsers (for Windows-based
PCs and Macs), Xbox 360 and compatible smartphones.

Also new with Mediaroom 2.0, service providers will now be able to offer
their existing on-demand TV service to their entire broadband customer base
using their existing set-top box inventory, thereby expanding their service
footprint beyond the reach of their IPTV network. The same on-demand service
can also be enjoyed on Windows 7-based PCs using Windows Media Center,* as
well as on Xbox 360. Service providers also can offer subscribers access to
their on-demand programming remotely using a range of Web browsers running on
Windows-based PCs and Macs and, in the near future, on compatible
smartphones.

Mediaroom 2.0 also adds support for Microsoft Silverlight and Microsoft
Internet Information Services (IIS) Smooth Streaming for the access and
delivery of on-demand content. This enables viewers to enjoy an exceptionally
high-quality playback experience, because IIS Smooth Streaming adapts the
video stream to the user's network connection to enable optimum video
quality. In addition, support for Microsoft PlayReady preserves the service
providers' ability to secure their content libraries and monetize consumer
experiences.

"Our strategy with Mediaroom is to combine the power of client software
and cloud-based services to greatly enhance the way consumers experience
digital entertainment. We want to make it easier for consumers to find and
discover great content, to watch, listen and engage in new ways, and to do so
anywhere and on any screen," said Enrique Rodriguez, corporate vice president
for the TV, Video and Music Business at Microsoft. "Mediaroom 2.0 is a key
milestone in our strategy, providing the software platform to power
operators' service clouds to reach more screens, and more people, with more
content than ever before."

More Screens

Watching TV on a PC is a growing trend. For some, it is a second or third
screen in the home or is used for watching TV when on the go. For others, the
PC may be their only screen for TV. Mediaroom 2.0's new support for Windows
Media Center in Windows 7 means operators can now deliver their premium TV
services, including live high-definition (HD) TV, DVR and on-demand
programming, to virtually any Windows 7-based PC with no additional hardware
tuner required. In addition, DVR and on-demand content can be enjoyed on Xbox
360, a broad range of Web browsers for Windows-based PCs and Macs, and, in
the near future, playback on compatible smartphones while on the go.

All of this gives consumers more freedom in where and how they access
their TV service, with the benefits of a familiar experience across multiple
screens. For example, they could start watching a show on one screen and
finish watching it on another. They also could build a video queue on their
smartphone and watch it later on their TV or PC. While traveling, they could
watch recorded TV on their smartphone and later watch an on-demand feature
film in HD on their laptop, accessing the same storefront they enjoy at home.

More Networks

To date, Mediaroom deployments have been delivered over a fixed-line
managed Quality of Service (QoS) IP network. By integrating IIS Smooth
Streaming technology into Mediaroom 2.0, Microsoft enables operators to offer
a premium, HD-quality video-on-demand service, with minimal buffering and
fast startup times, even over IP-based networks of varying bandwidths.

This significantly expands the service reach for operators and enables
them to serve customers on fixed-line as well as wireless and, in the future,
mobile broadband networks. For operators wishing to deliver only on-demand
TV-video services to customers via the Internet, Mediaroom 2.0 includes a
set-top box client that supports this functionality and is designed for
self-installation by the subscriber. This client is upgradable to full
Mediaroom functionality without the need for hardware changes.

For consumers, this advancement means that more people in more places
will be able to experience the benefits of cutting-edge Mediaroom-powered TV
services than has been possible before. It also means that whatever the speed
of their network, they will enjoy an optimal viewing experience thanks to
built-in support for IIS Smooth Streaming.

More Content

Consumers are demanding access to ever-larger libraries of content, and
IPTV operators are looking to meet this demand and further differentiate
their services by augmenting their existing content lineup with TV and video
from the Web. With Mediaroom 2.0, operators can now easily bring together
live and on-demand TV with externally hosted content from Internet TV
partners and other Internet-based content sources, all in one place with a
consistent, easy-to-use interface. New support for playback of content
protected using PlayReady, Microsoft's advanced content access and protection
technology, further expands the base of potential content for operator TV
services. In addition, operators can further distinguish their services with
applications that provide rich interactivity and seamless blending of Web and
TV content using the Mediaroom application development platform, Mediaroom
Presentation Framework.

Once a Mediaroom 2.0-powered service is deployed, subscribers will be
able to enjoy the content they want to watch in one place on their TV or PC -
no more having to visit a multitude of sites to find what they are looking
for or connect a PC to the TV. Instead, they will be able to easily find and
watch TV shows on demand across different networks using one easy-to-use
guide, or simply search through the programming available to find the shows
they'd like to watch, all in a consistent playback experience.

More Revenue

According to analyst firm Screen Digest the top five Mediaroom customers
generate on-demand average revenues per user (ARPUs) that are on average
three times that of the incumbent pay TV operator in their market.

Mediaroom 2.0 includes a compelling new on-demand storefront that further
enhances the monetization potential for Mediaroom service operators. The new
on-demand storefront is designed to help drive subscriber usage and
satisfaction by providing a richly visual browsing, discovery and playback
experience, and offering easy access to other elements of the operator's
service directly from the storefront.

                         Mediaroom 1                  Mediaroom 2.0
    Screens       -- TV via set-top box         -- TV via set-top box
                     and Xbox 360                  and Xbox 360

                                                 --Windows 7-based PC via
                                                   Windows Media Center
                                                -- Internet browser on
                                                   Windows-based PCs and
                                                   Macs
                                                -- Compatible smartphones

    Networks      -- Managed QoS IP network     -- Managed QoS IP network

                                                --Unmanaged broadband IP
                                                  network (Internet)

    Content       -- Operator-ingested         -- Ability for operators
                     content only                 to ingest TV content and
                                                  link to Internet content
                                                  (TV and other audio-
                                                  video content)

About Microsoft Mediaroom

The award-winning Microsoft Mediaroom Internet Protocol Television (IPTV)
and multimedia software platform is the most widely deployed IPTV platform in
the world. Mediaroom is driving the future of television by enabling
broadband service providers to deliver new connected TV and entertainment
experiences to consumers worldwide. It provides new ways for consumers to
experience TV as part of their connected, digital lifestyle, while also
creating new business opportunities for broadband service providers, hardware
manufacturers, content creators, advertisers and application developers. Over
20 of the world's leading service providers across four continents have
selected the Mediaroom platform to drive their digital TV services. More
information on Mediaroom and the opportunity to deliver the best in TV plus
all your media in one place is available at
www.microsoft.com/mediaroom.

About Microsoft

Founded in 1975, Microsoft (Nasdaq: MSFT) is the worldwide leader in
software, services and solutions that help people and businesses realize
their full potential.

* All versions of Windows 7 except Windows 7 Starter.

Edelman for Microsoft, +1-206-223-1606, TVMMediaroom at edelman.com / NOTE TO EDITORS: If you are interested in viewing additional information on Microsoft, please visit the Microsoft Web page at www.microsoft.com/presspass on Microsoft's corporate information pages. Web links, telephone numbers and titles were correct at time of publication, but may since have changed. For additional assistance, journalists and analysts may contact Microsoft's Rapid Response Team or other appropriate contacts listed at www.microsoft.com/presspass/contactpr.mspx.