While browsing around, I spotted this story at Slashdot (http://slashdot.org/articles/03/04/11/0141239.shtml?tid=109&tid=97) regarding a new video compression method Microsoft has had in the works for a while now. Think of WMA for video... it would seem they are aiming at the MPEG-4/DivX crowd and while I'm hearing good comments on the technology itself, perhaps Microsoft's own restrictions won't let it grow, here's the user post from /.:

While the DVD Forum (http://www.dvdforum.com/forum.shtml) continues quibbling over a new blue-laser based HD-DVD standard, it looks like Microsoft has been busy developing a new video compression method that can show high quality HD video at bitrates similar to current DVD's (between 5-8mbps). Proof, you say? Check out some stunning samples (http://windowsmedia.com/9Series/DemoCenter/VideoQuality.asp?page=6&lookup=VideoQuality) of this cutting edge technology. Myself and many others (http://www.avsforum.com/avs-vb/showthread.php?s=&threadid=211757) have watched it and most of us feel this is significantly better looking than MPEG-4/DivX HD video of the same bitrate. This technology is causing some excitement, as the T2: Extreme Edition DVD package will include a DVD containing T2 in HD (http://dvd.ign.com/articles/393/393023p1.html), compressed with this technology. Anyone with a fast PC will be able to watch T2 in high def, no pricey blue laser player (http://www.watch.impress.co.jp/av/docs/20030402/zooma102.htm) required.

As a side note, the examples on MS website seem to be restricted to IE users only. Also you may remember what we reported (http://www.techspot.com/vb/showthread.php?threadid=4924) last week on Windows Media being ported to Linux, now we have a better idea what was it all about.