google_logo1Google has just spent a huge amount of money. Google has purchased On2 Technologies, the makers of video compression software for 106.5 million dollars in stock. The software maker’s compression software compresses videos in more than 2 billion computers (desktop) and mobile devices. It compresses videos worldwide for well known companies such as Adobe, Skype, Nokia, Sun Microsystems and Sony.

Why would Google take this move, you ask. Well the answer is quite simple, this technology has the potential to serve Google’s video sharing sit YouTube in an excellent way. Sundar Pichai, Vice President, Product Management, Google said in this regard:

Today video is an essential part of the web experience, and we believe high-quality video compression technology should be a part of the web platform

Google currently has no clear idea or path as to how it would go about using On2 assets. Jeremy Doig, engineering director for video and group product manager said:

Although we’re not in a position to discuss specific product plans until after the deal closes, we are committed to innovation in video quality on the web, and we believe that On2 Technologies’ team and technology will help us further that goal.

On2 technology promises and provides

  • Faster encoding
  • Easier playback
  • Smaller files
  • Faster download times
  • Reduced streaming delays
  • Lower bandwidth costs without compromising visual quality.

It remains to be soon how efficiently Google utilizes their latest purchase. All I can say is that we may expect faster download time and less streaming delays when using YouTube.