Video compression software specialists On2 Technologies on
Monday announced a licensing deal with America Online to
put its flagship VP5 and VP6 codecs on services offered by AOL’s content
partners.
The New York-based On2, which has embraced the
open-source community with previous versions of its technology, said the
deal with AOL would allow the distribution of the VP5 and VP6 encoders to
AOL content partners.
Financial terms of the non-exclusive deal were not released but On2 chief
executive Doug McIntyre told internetnews.com the licensing terms
were wide ranging and would permit AOL to distribute certain products and
services to its subscribers that contain VP5 and VP6 encoders and
decoders.
“It’s a very broad licensing deal. They (America Online) can use it
virtually anywhere — on PCs and on gaming and wireless devices,” McIntyre
said.
The VP5 and VP6 codecs are the newest versions of the company’s video
compression technology, which promises high-quality video resolution at
heavily reduced data rates.
The VP5 codec is the latest version and VP6 is scheduled for release this
spring. America Online is the first company to license the newer VP6
technology, McIntyre said.
“These codecs — VP5 and VP6 — offer more power. VP6 can give the same
picture quality at 300 kbps than what the older VP3 can do at 800 kbps,” he
added.
The latest announcement follows a similar deal to license On2’s
technology for use on a new plasma screen television being built by Sony
Corp. . Details of the Sony deal were being kept under
wraps but McIntyre confirmed On2’s codecs would be included in the new Sony
TV that will be fitted with Internet streaming capabilities.
“In terms of the size of the customers, if you look our deals with Sony
and AOL, it’s a clear indication that our technology is gaining broad
adoption,” he added.
The company also has high-profile licensing deals with RealNetworks
, Apple Computer
and ABC News to use
the video compression technology.
The deals could not have come at a better time for On2, which was forced
to restructure
last year to conserve on dwindling cash reserves.
