Microsoft said "increased collaboration" is key to combating online child abuse content, adding, "We need to tackle the core problems of creation, distribution and consumption".
A spokeswoman said: "Microsoft has long been focused on disrupting child sexual abuse, including developing PhotoDNA to strike at the heart of the repeated sharing of the same images time and again across the web.
"Increased collaboration between Microsoft, the Government, CEOP, the IWF, Google and others in the industry is the best way to combat this vile content. Today is a good step forward in this combined effort".
These are dramatic new steps which will make the internet safer and better for children, a leading Internet safety expert writes.
The search engines have stepped up to the plate - their reforms will help remove video child abuse content more quickly and comprehensively.
Former chief of CEOP Jim Gamble said the government must ask whether they are doing enough in the internet safety debate.