Microsoft

Although it talks about the battle with Google as a marathon rather than a sprint, Microsoft is hoping that the Olympics will help give its Internet properties a tail wind.

As Google and Yahoo are also doing, Microsoft is tailoring its search results to feature Olympics content. Its news, video, and celebrity search results will all highlight Olympics content.

Still, when it comes to search, Microsoft is probably going to have to be happy with the Bronze medal, in terms of overall traffic.

In other events, though, Microsoft is going for the gold (OK, I'm done with Olympic metaphors). Most notable is its deal with NBC, which is using Microsoft's Silverlight to power the video on NBCOlympics.com, which is being produced in conjunction with MSN.

While much of the attention is focused on the thousands of hours of live and on-demand video streams for the PC, more limited options also exist for content to be downloaded to an Xbox, Zune, or Windows-running laptop.

Click here for more stories on tech and the Beijing Olympics.

Stage 8H is best known as the place where Saturday Night Live is filmed. This week, though, it's been turned into an ad-hoc data center as part of NBC's efforts to stream thousands of hours of live Olympic coverage over the Internet.

Instead of the usual crop of comedians, NBC will have dozens of people watching every hour of the games, looking for highlights that it can chop up and make available on-demand. It's just one piece of an elaborate arrangement that shuttles the events in Beijing back to the U.S.

From each of the dozens of Olympic venues, a high-definition video feed is delivered over fiber-optic cables to the International Broadcast Center that has been set up in Beijing. A bunch of encoders and Windows Media servers get the video into an Internet-ready format. From there, it travels via satellite to NBC's headquarters in New York.

There, NBC actually adds a one-minute delay, allowing its cadre of live bloggers in Stamford, Conn., and elsewhere to write their text and have the video and commentary synchronized. Once ready, it goes from NBC to Limelight Networks, a content delivery network, which has 1,000 servers just for the live events sending the content to various Internet service providers, who then shuttle the content directly to their customers. (See chart below)

(Credit: Susan Dove/CNET News)

Making it play
Limelight Chief Strategy Officer Mike Gordon said his company is prepared for this to be the biggest live event the Internet has ever seen. "I would not be surprised at all to get 1 million viewers," he said. "We're certainly prepared for whatever the audience turns out to be."

Mike Gordon, chief strategy officer, Limelight Networks

(Credit: Limelight Networks)

That said, there is clearly an element of risk in all this, considering NBC's history of live Olympic streaming has been limited to broadcasting a single game, the gold medal ice hockey match in Torino, Italy, two years ago.

"NBC has always taken risks and is always trying to do more than it has in the past," said Perkins Miller, the NBC senior vice president in charge of the Internet push. "It does keep me up at night when I think about streaming 2,200 hours (of live coverage)."

The massive effort has come together in a remarkably short amount of time. Microsoft's deal to power NBCOlympics.com dates back only to January.

NBC had a pretty good idea what they wanted to do and had built some mock-ups of the player prior to deciding to partner with Microsoft.

Initially, they expected to use Adobe's Flash, given that is the standard for video delivered over the Internet these days. But, as they began to hash things out with Microsoft during a series of all-day meetings at NBC's 30 Rockefeller Plaza headquarters, Microsoft was able to show NBC some ways it could do more using its homegrown Silverlight technology.

Silverlight, Microsoft said, would be key to enabling NBC's vision of a "control room" in which a viewer could watch multiple live streams at once.

Perkins Miller, senior vice president, NBC Universal

(Credit: NBC)

Even within Microsoft's team, though, there was some apprehension of whether it was doable.

"Can we actually pull this off?" Senior Technical Evangelist Jason Suess recalled thinking. "Is the user's machine going to be able to maintain four connections at one time?"

The key, Suess said in an interview at Microsoft headquarters last week, is using an approach known as adaptive streaming in which the player has the ability to customize the bit rate of the video stream based on a computer's connection and processing power.

By Valentine's Day, they were ready for a test. It was pretty important that the test work out, given that NBC was getting ready to crate up the gear to ship it off to Beijing.

"That was the first time the player came to life," Suess said. "Obviously the player was extremely crude."

Making it pay
One of the last pieces to fall into place was the advertising. Initially, NBC and Microsoft were hoping to be able to insert full video ads into the live streams, but doing so is tough work.

"You don't have any way to pause a live stream," Suess said. "Trying to deliver a video ad on top of that, you hit the limits of a user's bandwidth."

As of mid-April, they were still struggling with what to do and began considering that perhaps they would have to just rely on companion advertising around the video stream. Then they came up with an idea. Rather than insert full videos into the live streams, what if they stuck a display ad into the video, particularly during dead times in the action.

Jason Suess, senior technical evangelist, Microsoft

(Credit: Ina Fried/CNET News)

That, approach, which is ultimately what's being done, solved several issues. It was less bandwidth-intensive than video ads, but still got the advertiser directly in front of the viewer, all without interrupting any of the coverage. The amount of advertising will vary, Suess said; "It depends what is happening in the sports. We just wait for a dead space."

By early May, NBC made the basic player available on the Internet, using a variety of prerecorded Olympic video, and by early June the enhanced Silverlight player was made public as well. The Olympic Trials, at the end of June, offered the companies and the public a chance for a test drive.

At this point, it's come down to a triage of the few remaining known bugs. Each day, the bar is being raised in terms of what is a big enough deal to warrant such a late change. Suess, meanwhile, sent his wife and kids to visit family in New York so he could work 18-hour days.

In an interview last week, Suess said he had been at work until 1 a.m. the night before and gets in every morning by 8 a.m., so he can chat with the folks in Beijing before they sign off for the night.

"If I am not online and pushing things along, then I am introducing delay," Suess said.

An admitted type-A personality, Suess is a stickler for organization--the kind of guy whose desk is always clean. (His wife would probably use the word "compulsive," Suess said.)

Suess said he hopes things will be enough under control that he can actually watch some of the games, particularly sailing, of which he is a big fan. "I sure hope so," he said. "When I got involved in this project, that was one of the reasons."

Click here for more stories on tech and the Beijing Olympics.

Microsoft's latest legal headache is a suit from a little-known company called Gotuit Media, which charges elements of Silverlight infringe on the video metadata company's patented technology.

In a suit filed July 2 in San Francisco Federal Court, Gotuit charges Silverlight infringes on several of its patents and seeks an injunction against the software maker as well as damages and attorney's fees.

Microsoft plans to use Silverlight to allow visitors to NBCOlympics.com to watch multiple events at the same time, as well as view streaming commentary. Gotuit cited these plans as part of its patent infringement suit.

(Credit: Dan Farber/CNET News.com )

Gotuit may be a relative unknown, but Microsoft is facing an opponent it knows quite well. Gotuit is represented by San Francisco-based lawyer Spencer Hosie, the same Hosie that successfully represented Burst.com in its .

Hosie declined to comment on the Gotuit case.

Of note, Gotuit, in its complaint, mentions specifically Microsoft's plans to use Silverlight in conjunction with video metadata as part of its powering of the NBCOlympics.com Web site. Silverlight is Microsoft's rival to Adobe's Flash for Web video, among other uses.

Microsoft spokesman David Bowermaster said the company had yet to be served in the case, "so we're not in a position to comment."

Gotuit has a range of products used by customers like Lifetime television to make it easier to search and navigate through online video.