Google to improve online video with On2 Technologies

by Stevie Smith - Aug 6 2009, 15:00

In an acquisition move that may signal its intent to enhance the standard of online video content in the home and on the go, search behemoth Google Inc. has announced the purchase of video codec specialist On2 Technologies Inc.

“Today video is an essential part of the Web experience, and we believe high-quality video compression technology should be a part of the Web platform,” outlined Sundar Pichai, vice president of product management at Google in an official statement.

“We are committed to innovation in video quality on the Web, and we believe that On2’s team and technology will help us further that goal,” he added.

In terms of possible applications of On2’s technology, the New York-based company’s bandwidth-friendly codecs (specifically VP8) could be adopted as viable alternatives to the likes of H.264 through Google platforms such as Android and Chrome.

Also, Google-owned YouTube, which provides users with millions of video clips every day, would be an obvious beneficiary of the VP8 codec due to it requiring around 40 percent less data than H.264 video compression.  

California-based Google has agreed to pay $106.5 million USD in stock for the acquisition, which is subject to standard shareholder and regulatory approval.

On2's client base includes technology heavyweights such as handset maker Nokia Corp., software specialist Adobe Systems Inc., and Infineon Technologies AG.

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