XM to Demo In-Car Video at CES

Building on an agreement first announced at last year's CES, On2 Technologies said on Tuesday that it would demonstrate in-car video receivers at this week's show through partner XM Satellite Radio. The devices would receive video content through XM's satellites, encoded in On2's proprietary format.

XM rival Sirius had announced previously that it intended to launch a video service with partner Microsoft later this year, however no further announcements as to the progress of the service have been made.

The car devices will be able to stream live content or store it for later playback. On2's VP7 video encoding technology will be used to ensure quality playback at low data rates. Lower rates would ensure that XM's audio channel quality is not degraded in order to provide video content.

"On2's VP7 video compression is enabling XM Satellite Radio to develop solutions for extending our entertainment offerings in the vehicle," said Dr. Stell Patsiokas, executive vice president, technology and engineering at XM Satellite Radio. "We see an exciting future for these capabilities and look forward to continuing our successful partnership with On2."

Neither XM or On2 have announced any further information regarding the eventual launch of the service.