An interesting article on Ecommerce Journal this morning about Google’s accquisition of On2 Technologies for $106.5 million. The article makes a lot of relevant points. On2 video’s 8th generation (VP8) brings bandwidth savings far beyond any other format available. Currently most online video content is Flash using VP6. Google will be saving a lot of money as the article states in bandwidth costs and license fees alone.
However, we have to assume that most times Google thinks bigger and wider than just the dollars and cents, it thinks in terms of infuence, disruption and market penetration as well. Google continues to make strategic moves in the video space, it has to. This accquisition may give Google an immediate edge in terms of cost and quality, it also shows Google’s continuing desire to engage in the video space and to try and diversify and increase its market share.
YouTube may at times seem like the white elephant in the room at Google, but existing video is just content (a canvas) waiting to be “re”created, repurposed, re-energised and monetised. When the time comes and we have learned and taken up what online video can be, YouTube is going to be another little cash cow for Google, that just ticks in revenue with every impression or the possibility of revenue for every impression.
Google opening and releasing VP8 for general public use or charging fees for it’s use? Interesting question, but Google will probably see that the benefit of allowing everyone to use their format will profilerate it and therefore profilerate them.
The future is not bright, it is interactive and may be VP8….
How much difference is there to the quality? See for yourself below. They do recommend that the video be viewed in fullscreen. The average internet user is not going to notice much difference really, but it is improvement and we will always strive to improve.
7 August 2008 – Gary Wilson