On2 Extends Relationship with Skype in New Strategic Agreement

On2 Technologies has signed a new agreement with Skype to extend Skype’s relationship licensing On2’s video codec technology.

Millions of people every day use Skype software to communicate with others through free voice and video calls. On2’s technology provides encoding, scaling, pre-processing and post-processing of video on Skype. On2 supported the launch of video on Skype in 2005 with the integration of the On2 VP7codec with Skype 2.0 for Windows. Since that time, Skype launched High Quality Video in October 2007, calling on the On2 codec, allowing users with as little as 0.5mbps available bandwidth to enjoy full screen video calls at VGA resolution. The On2 codec is also used in the recently announced Asus AiGuru SV1 Skype Certified Videophone. The new agreement is intended to pave the way for the On2 codec to migrate along with the Skype service to a diverse array of new devices such as the Asus AiGuru SV1 Skype Certified Videophone.

Matt Frost, Interim CEO and Chief Operating Officer of On2 Technologies commented, “On2 and Skype hold the same vision for video communications and through our close cooperation we have overcome the barriers keeping video calling out of reach for many.” Frost added, “In the future, you can expect to see even better video quality requiring even less bandwidth, and this will help to make video calling even more commonplace.”

The superior compression performance of the On2 codec makes High Quality Skype video calls possible even over data rate connections as low as 300kbps. Among the numerous quality-enhancing innovations in On2 video codecs is Golden Frames, which enables a sharp background image to be maintained with minimal data when the subject in the foreground is continually moving. This feature is also extremely beneficial for packet-loss recovery. On2 video codecs also require far less CPU power for full duplex live video than other compression formats, enabling Skype users with older and less powerful PC systems to enjoy high quality video calls, and allowing stand-alone devices like the AiGuru SV1 videophone to be produced cost effectively, using less expensive processor technology.

Manrique Brenes, Director of Business Development and Product Management for Consumer Electronics for Skype said, “Bringing a great video calling experience to the average consumer is one of Skype’s key priorities, and we see On2 as a key partner in helping us deliver this.” Brenes concluded, “Using On2’s codecs along with extensive software development and optimization work by engineering teams at Skype, we are able to help consumers overcome bandwidth constraints and deliver best-in-class free video calling for consumers.”

On2 Technologies, www.on2.com