On2’s Codecs Speed Net Video

On2 Technologies demonstrated its TrueMotion VP6 and VP7 codecs at the CES show in Las Vegas.

The codecs can compress high-definition video down to 2Mbps, significantly increasing the speed at which it can be transmitted over the Internet.

Codecs are mathematical formulas that enable very large digital-video files to be compressed and decompressed with minimal damage to quality.

Large video files are difficult to transfer via broadband networks, resulting in long download times. A two hour film, for example, can take six hours to download and the image quality is often inferior to DVD quality. These issues are major deterrent to downloading films and TV programmes from the Internet.

On2 Technologies’ long-term strategy is to help distribute high-definition content over the Web and the new Codecs are a key element in positioning the company to serve the increasing number of media companies in the online video market who would benefit from its products.

On2 currently licenses its technology to China Mobile, Skype, Brightcove, XM Satellite Radio and Adobe, which integrates On2’s VP6 codec into its Flash 8 and 9 players.

On2 faces competition from Microsoft and DivX and the development of H.264, a standards-based codec and successor to MPEG4 format. DivX plans to launch a video-sharing site called Stage6.divx.com, which will demonstrate its compression software.

Microsoft is also increasing its presence in the media delivery industry. The company includes its streaming encoder, media server, player, tools and digital rights management (DRM) products with its Windows operating systems and servers at no additional cost.