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Microsoft just made a strategic investment of undisclosed size in Move Networks, a startup that helps companies offer high-definition video on the web. The funding should help promote Move Networks’ integration with Microsoft’s Silverlight platform.

The American Fork, Utah-based startup says its technology encodes high-quality video and cuts down on buffering delays. Microsoft, meanwhile, has found some high-profile uses for its relatively new technology Silverlight, including the online broadcasts of the Beijing Olympics. You can already see the combination of Silverlight and Move’s technology in the videos posted on the official website of the Democratic National Convention, which started today. (Of course, it’s a bit of a drag that you need to install not one, but two different players to watch official DNC videos.) Apparently, Silverlight will allow customers to add branding and other interactive elements to Move’s videos.

Move Networks has already lined up some impressive partners, including ABC, ESPN.com and Fox, and promises more Silverlight integrations in the future. Microsoft is joining Move’s $46 million third round, which was announced in April and included Benchmark Capital, Cisco, Comcast Interactive Media and Televisa.

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