On2: Standards Hurt Video Innovation

On2 Technologies, fresh off news that it will team up with XM Satellite Radio to provide in-car video via satellite, announced a new version of its video codec Monday, dubbed VP7. The company says that VP7 is able to deliver high-quality video over a dial-up connection, while competitors are held up by standards adherence.

"VP7 marks some major advances in compression technology," said Jim Bankoski, Senior Vice President of Engineering at On2. "We're particularly excited about the improvements we've achieved in animated material. The quality VP7 provides on animated material is truly astounding. We can now deliver high-quality animated material at dial-up data rates."

Company executives claim the VP7 codec was shown to a prospective client in the children's video market, and the client was "astounded" by the quality of the video. The company is actively seeking five patents for the technology incorporated within the new version.

Along with announcing VP7, On2 took the opportunity to lash out at market leaders Microsoft and RealNetworks, saying standards are hindering progress in the video codec space. Real has joined Apple in backing MPEG-4, while Microsoft has pushed for its own standard.

On2 CEO Douglas McIntyre says that his company is moving ahead of competing Windows Media and Real video codecs that are "growing long in the tooth," and innovation was held up by such strict adherence to standards by both companies.

"The bottom line is that while our competitors make promises and debate in standards committees, On2 is delivering concrete results in marketable products," said McIntyre.