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Updated: November 6th, 2008 09:11 AM CDT

On2 Technologies and Zencoder Partner to Create On-Demand Video Encoding Service

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via PRNewswire

CLIFTON PARK, N.Y. and MINNEAPOLIS , Nov. 6 /PRNewswire-FirstCall/ -- On2 Technologies, Inc. (Amex: ONT) and Zencoder, LLC announced today that they are collaborating to build a high-capacity video encoding service within the Amazon Elastic Compute Cloud (EC2).

On2 will integrate its On2 Flix Engine video encoding software with the Zencoder video transcoding system to create a web-based service that lowers costs for content publishers while also providing nearly unlimited encoding capacity.

"In evaluating partners for our service, we sought someone with strong web application and virtual computing experience, and Zencoder fit the bill perfectly," said Eero Kaikkonnen, Chief Marketing Officer at On2. "Integrating our Flix Engine with Zencoder will provide a flexible solution that handles every aspect of the video publishing lifecycle -- from job queuing to encoding to storage -- while requiring minimal effort by developers. In fact, after subscribing to the service customers will be able to start publishing videos the same day."

"Cloud computing, like Amazon EC2, is perfect for video transcoding. Transcoding is CPU-intensive, and transcoding tasks usually come in waves. So Amazon EC2 gives us enormous CPU resources that we can scale up, and down, as needed," said Jonathan Dahl , founder of Zencoder.

Service Will Simplify Development, Reduce Costs for Customers

Video web sites who publish large quantities of content in-house face two significant problems. During slow traffic periods their encoding servers are underutilized, resulting in wasted resources. When traffic is heavy, however, the servers can become overwhelmed, decreasing quality-of-service and frustrating end users.

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