On2 Technologies is a developer of video compression technology and technology that enables the creation, transmission, and playback of multimedia in resource-limited environments, such as cellular networks transmitting to battery operated mobile handsets or High Definition (HD) video transmitted over the Internet. We have developed a proprietary technology platform and the On2® Video VPx family (e.g., VP6, VP7, and VP8) of video compression/decompression (“codec”) software to deliver high-quality video at the lowest possible data rates over proprietary networks and the Internet to personal computers, wireless devices, set-top boxes and other devices. Unlike many other video codecs that are based on standard compression specifications set by industry groups (e.g., MPEG-2 and H.264), our video compression/decompression technology is based solely on intellectual property that we developed and own ourselves. In addition, through our wholly-owned subsidiary, On2 Technologies Finland Oy, we license to chip and mobile handset manufacturers, and other developers of multimedia consumer products the hardware and software designs that make the encoding or decoding of video possible on mobile handsets, set top boxes, portable media players, cameras and other devices. We also provide integration, customization and support services to enable high quality video on, and faster interoperability between devices.
In 2004, we licensed our video compression technology to Macromedia, Inc. (now Adobe Systems Incorporated) for use in the Adobe ® Flash® multimedia player. In anticipation of Adobe using our codec in the Flash platform, we launched our business of developing and marketing video encoding software for the Flash platform. Flash encoding has become an increasingly important part of our business. In December 2008, we entered into a license agreement with Sun Microsystems for the use of our video compression technology in the JavaFX® platform and anticipate further growth for our encoding and transcoding businesses as a result of this transaction.
In addition, we have also dedicated significant resources to marketing customized software to device manufacturers that enable their devices to decode Flash and JavaFx content.
We offer the following suite of products that incorporate our proprietary compression technology: Video codecs, including On2 VP6®, VP7™ and VP8™; Flix® Pro – an application targeted at web developers for encoding and transcoding video for delivery over the Internet to either Flash or JavaFX players.
Flix Publisher – a set of web browser plug-ins that enable live capture, encoding, and transcoding of video along with posting on web sites or live streaming via the Adobe Flash Media Server;Flix Engine – a backend server side transcoding platform used by a large number of video sites to repurpose their video for playback over the internet and devices; andFlix DirectShow SDK – a set of libraries that enable software vendors to create, edit, and deliver video content for Flash or JavaFX;We also offer the following suite of hardware and software products that incorporate our mobile video technology: On2 VP6, VP7 and VP8 software video codec designs; MPEG-4, H.263, H.264 / AVC and VC-1 hardware and software video codec designs; Hardware and software JPEG codecs supporting up to 16MP; AMR-NB and Enhanced aacPlus™ audio codecs; Pre- and post-processing technologies (such as cropping, rotation, scaling) implemented in both software and hardware; File format and streaming components; and Recorder and player application logic.
In addition, we offer the following services in connection with both our proprietary video compression technology and our mobile video technology: Customized engineering and consulting services; On2 Flix Cloud, our pay-as-you go encoding service; and Technical support.