On2: Standards Hurt Video Innovation

By Ed Oswald and Nate Mook | Published January 10, 2005, 2:24 PM

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.

Comments

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if their VP7 doesn't offer what they proclaim it does.. especially the excellent quality at very low bitrates (that's what it's all about).. they really are in a bad situation. There's no market for a just as good as any other but not standard compliant product.

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>>if their VP7 doesn't offer what they proclaim it does.. especially the excellent quality at very low bitrates (that's what it's all about).. they really are in a bad situation. There's no market for a just as good as any other but not standard compliant product.

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This tells me to stay far, far away from On2 products--period. Any company that doesn't have their eye on standards isn't worth doing business with, especially in the media presentation world. Look at Toshiba's current class action suit, they strayed a tad from the DVD spec and tens of thousands couldn't play DVD's and often froze up permanently on play within 5 minutes, making the players useless junk. This never should have happened, and it cost them dearly in terms of monetary losses but more important consumer loyalty.

Without focusing on hard-set standards I have no reason to stick with a product. WHat happens when On2 is abandoned their line and I'm stuck with an abandoned codec? Another reason to stick with open source formats and codecs (for example OGG, which will always be around, forever)

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Dear mjm01010101:
I think I'm aware of a non-standard company that ended up doing pretty fair: Apple. Heard of them? If the population likes it enough, they'll do just fine. Try not to worry too much. ;)

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Apples and Oranges, so to speak...
You mean the Apple, that uses Standards such as AAC, PCI, PCI express, AGP, SDRAM memory, etc? The Apple that has a strict standards amongst it's platforms? to the point of lock-in? I think you know what I am talking about.

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