WB Online inks content deal with On2
Provider hopes to rival other video streaming players
New York-based company has also been tapped by Warner Bros. Home Video to encode the studio's entire film library, as Warner Bros. nears a final decision on whether to become part of Sony's upcoming video-on-demand service, rolling out in the coming months. Studio had been waiting for its merger with AOL to close before making an announcement.
Landing the vendor deal with Warner Bros. is a coup for On2, which is trying to market its video streaming technology as a higher-quality and more viewable alternative to RealNetworks' RealPlayer, Microsoft's Windows Media Player and Apple's Quicktime.
Although On2's agreement with Warners involves only encoding, the odds are good that its player technology will make its appearance in front of Warner Bros. Online's millions of monthly visitors. Player is already used on the Web sites for USA Networks and the Sci Fi Channel, among others.
Company, which originally began as a Netcaster of original Web content, has since transformed itself into an Internet video services provider of video compression, video streaming technology and broadband consulting services to Internet companies.
On2's software allows users to view high-resolution, full-screen video streamed over the Internet. Company landed former prexy and CEO of BMG Entertainment Strauss Zelnick as non-executive chairman in November.
Encoding content
The two-year agreement between On2 and Warner Bros. involves the encoding of promotional content, including movie trailers and original Web series, to be Netcast.
Last year, Warner Bros. Online encoded 30,000 minutes of programming for Entertaindom.com and its Warner Bros. Online Web sites.
Warner Bros. confirmed last week that is still deep in discussions with Sony, although the encoding deal with On2 signals that a deal may be close.
Sony is targeting an April launch for its Internet VOD movie service and expects to have several major studios onboard.
The studio's fee-based service would introduce movies on the Internet in the same window as pay-per-view, generally 30-60 days after the homevideo release and months before the movies reach premium channels like HBO and Showtime.
