Microsoft Silverlight is a browser plugin that allows web applications to be developed with features like animation, vector graphics, and audio-video playback - features that characterize a rich internet application. Silverlight competes with products such as Adobe Flash, Adobe Flex, Adobe Shockwave, Java FX, and Apple QuickTime. Version 2.0 brought improved interactivity and allows developers to use .NET languages and development tools when authoring Silverlight applications.
Silverlight was developed under the codename Windows Presentation Foundation/Everywhere (WPF/E). It is compatible with multiple web browser products used on Microsoft Windows and Mac OS X operating systems. A third-party free software implementation named Moonlight is under development to bring compatible functionality to GNU/Linux. Mobile devices, starting with Windows Mobile 6 and Symbian (Series 60) phones, will also be supported.
Custom branded experiences using 2D vector graphics, animation, styling, and skinning
Highly sophisticated RIA’s across major browsers on Mac, Windows, Linux, and devices
HD video and adaptive streaming techniques for world-class media experiences
Unparalleled interactivity with high resolution content through Deep Zoom technology enabling smooth browsing independent of screen size.
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Silverlight 2.0 Beta
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Source : Wikipedia.org, Microsoft.com