On2 licenses technology to RealNetworks

By Gwendolyn Mariano
Staff Writer, CNET News

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Video compression provider On2 Technologies said it has inked a deal with streaming media company RealNetworks to license On2's video-compression technology for set-top boxes and other devices. New York-based On2 also said RealNetworks has made an investment of $1 million in On2. Under the deal, On2's VP4 video-compression technology will support RealNetworks' RealPlayer and RealSystem iQ to enable consumers to view digital video. On2 said it will develop a software plug-in to RealPlayer that will enable people to play files encoded in On2's VP4 format. The company will develop another plug-in for the RealSystem Server that will allow broadcasters to stream VP4 encoded files.

On2, formerly On2.com, licenses video codecs for set-top boxes, electronic gaming devices and wireless applications. Seattle-based RealNetworks develops software products and services that enable people to send and receive audio, video and other multimedia services using the Web.

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