On2

On2 Technologies, commonly referred to as On2, was an American software company that specialized in video compression technology. The company developed a series of proprietary codecs in the VPx line, including VP3, VP4, VP5, VP6, and later VP7 and VP8, which were used to encode and decode digital video for streaming, video conferencing, and online video players. The VP6 codec, in particular, was widely used in Flash Video (FLV) deployments during the height of Flash’s popularity.

In the late 2000s, On2 positioned its codecs as alternatives to other mainstream formats, with VP7 and VP8 playing key roles in its strategy. The landscape of web video shifted toward royalty-free or open formats, influencing how On2’s technology fit into broader industry trends, including competition from H.264 and the emerging open-source WebM project.

In 2010, Google announced the acquisition of On2 Technologies for roughly $106 million in stock. Following the deal, Google integrated On2’s VP8 technology into its WebM initiative and continued development within its broader video framework. The acquisition effectively absorbed On2’s technology and talent, and the On2 brand ceased to operate as a separate entity. VP8 was released as open source, helping to establish WebM as a permissively licensed video format intended for use across browsers and platforms.

Today, the legacy of On2 persists primarily through WebM and the historical impact of its VP8 codec on open web video standards. The company’s work illustrates a notable shift in the industry toward open, interoperable formats in online video.