ceocfointerviews.com – All rights reserved. – Issue: October 12, 2007 ”Any Video, Anywhere’ - With people demanding video on their PCs, TVs and mobile phones, On2 Technologies provides the solutions to deliver any video to any device over any network sion and streaming technologies. On2 looking for in my career, the opportunity video codecs are widely used in the Inter- to take a promising company to the next net, gaming, VoIP, and mobile media level.” markets. On2's software is used by such leading global companies as CEOCFO: What is the current vision for Adobe/Macromedia, AOL, Skype, XM the company and how do you get there? Satellite Radio, Sony, CTTnet, Vital- Mr. Joll: “Our vision for On2 Technolo- Stream, and Tencent. Located in New gies is formed around the mantra of ‘any York City, the company has R&D offices video, anywhere’. This is something we in Clifton Park, NY, and Cambridge, UK. have been doing for some time, but now it Services is a mainstream industry trend. What this Business Services represents is that we enable any video to (ONT-AMEX) Interview conducted by: be delivered anywhere, meaning to any Lynn Fosse, Senior Editor On2 Technologies, Inc. CEOCFOinterviews.com device, for any application, over any net- work. What is happening with video to- 21 Corporate Drive, Suite 103 CEOCFO: Mr. Joll, you are fairly new in day is that consumers want to view video Clifton Park, NY 12065 the role of CEO, what attracted you to on their PC, TV, mobile phones, and Phone: 518-348-0099 On2 Technologies? portable devices --basically any device. Mr. Joll: “On2 is uniquely positioned in New and established media companies the video industry. We are known to pro- are launching services to offer download vide the best quality video for any appli- and streaming services, but also tradi- cation. We have been the vanguard in tional broadcasters are embracing new pushing the envelope in this aspect, and mediums to reach a wider spectrum of we are the video in many pioneering users. We call this convergence or cross products and services from well-known platform applications, but the reality is brands, as a result. A few that come to that there is a sea change underway in the mind are companies like Skype, Adobe video industry. We have been involved in (Flash® video), AOL, Sony, and so on. such cross platform video since early days We have approximately 1.2 billion de- of the company, by applying our tech- ployments of On2’s video technologies. nologies for multiple applications, device Yet we are still a small company, and and delivery platforms. It is therefore in given the revolution that is happening in our DNA, in a manner of speaking, to bring solutions and innovations to this video -- that is video is moving from the transformation that is going on in the Bill Joll living room now to practically any device industry. We provide everything from President and CEO and can be consumed anywhere – the growth prospects before On2 are compel- core video compression technology to ling. Moreover, On2’s position in the tools, and system solutions, and are build- Company Profile: industry is an advantage – we are well ing our company’s operations around this On2 Technologies (Amex: ONT) is a known and respected for our technology capability to deliver any video, anywhere leading provider of video compression prowess and a fifteen-year history of suc- – in the most efficient, easy and afford- software and solutions. The company cess in this regard. So, when I look at able way for our customers.” revolutionized digital media delivery with where we are and where we can take this the creation of its advanced full-motion, company, it is perfect for what I was full-screen TrueMotion® video compres- CEOCFO: What are you actually provid- evolved solution level, we have a com- companies that are serious about video ing for people? plete end-to-end system for mobile video, know us. As we have broadened our solu- Mr. Joll: “At the core, we develop video called our TrueMobile® solution, that is tions for consumers and web media com- compression technologies, and the prod- the most efficient mobile video system panies, a lot of our customers find us uct is called a codec. Codec stands for presently available and it is currently in through word of mouth, including compression and decompression. So, in trials by China Mobile in ten provinces. through various influencers on the web. essence our technology allows video to be As part of this solution, we have a player We also have a growing sales force and compressed to a much smaller size by the that is deployed on mobile devices, and channel partners that conduct business developer of the video, and then decom- going forward we have playback and de- development and sales for us. Today we pressed at the user’s end while playing coding technologies that are being im- are also more proactive with advertising back video with a higher qual- plemented in chipsets by major semicon- and public relations than we have histori- ity than a non compressed file “Our vision for On2 Technologies is formed cally been.” for a given bandwidth. Codecs are the engines that power around the mantra of ‘any video, anywhere’. CEOCFO: Is it proprietary video, as we know it today. This is something we have been doing for some technology, is it a better way of What primarily sets codecs time, but now it is a mainstream industry trend. using the technology; what sets apart from one another is their What this represents is that we enable any video you apart from the competi- ability to maintain the quality to be delivered anywhere, meaning to any de- tion? of the video as bandwidth de- vice, for any application, over any network. Mr. Joll: “We became the de creases. Factors such as com- facto standard when Adobe plexity, which affects power What is happening with video today is that con- (formerly Macromedia) chose consumption and processor sumers want to view video on their PC, TV, mo- our technology for Flash video, requirements, are also key dif- bile phones, and portable devices --basically any the Adobe® Flash® Player 8. ferentiators. Our TrueMotion device. New and established media companies We provide higher quality, codecs are regarded as the best are launching services to offer download and better licensing terms, and we in the world, and these have use less bandwidth, so that is about 1.2 billion deployments streaming services, but also traditional broad- what sets us apart. Now what is with high-profile customers casters are embracing new mediums to reach a happening in the industry is the such as Adobe, Skype, AOL, wider spectrum of users. We call this conver- standards based technologies and Viewpoint. While we gence or cross platform applications, but the re- have established themselves in maintain our commitment to ality is that there is a sea change underway in certain markets, such as video- our best-of-breed codecs, with the video industry. We have been involved in on-demand. And while we con- our pending acquisition of tinue to aggressively market Hantro Products located in such cross platform video since early days of the our proprietary technology and Finland, we will add the ability company, by applying our technologies for mul- help introduce new service to support leading standards tiple applications, device and delivery platforms. paradigms, such as what we based codecs for our solutions It is therefore in our DNA, in a manner of have done with Skype, with the that are built on codecs. These speaking, to bring solutions and innovations to the pending Hantro acquisition solutions are a range of soft- we will support customers for ware products that fulfill the this transformation that is going on in the indus- standards based technologies to ‘any video, anywhere’ promise. try. We provide everything from core video the extent that we provide We also market our Flix® compression technology to tools, and system so- value to the industry and derive brand of encoding and publish- lutions, and are building our company’s opera- synergies with our existing ing tools, which allow our cus- tions around this capability to deliver any video, products and technologies. tomers to create and publish anywhere – in the most efficient, easy and af- Therefore, we have a combina- videos for web, mobile devices, tion of proprietary technologies and other applications. Suffice fordable way for our customers.” - Bill Joll ideally suited for the Internet it to say, we offer the broadest and mobile applications, and line of products that allow practically any ductor houses so that consumer grade the standards based technologies that are video file to be purposed or repurposed devices like set-top boxes and DVD play- used by some in the broadcasting indus- for any desired application. We have ers will be able to play video in high try. With the pending acquisition of Han- these products for consumers, profes- quality.” tro, we are further expanding our pres- sional users, enterprises, and service pro- ence in the standards and device space.” viders, with a varying range of features CEOCFO: How do you reach your cus- and capabilities for different markets. We tomers? CEOCFO: Are acquisitions part of your also provide these for desktops and server Mr. Joll: “As I mentioned earlier, we strategies going forward? side encoding, and across Windows, have been established as a leader in video Mr. Joll: “The industry is moving fast Linux and Mac platforms. At a more codecs for more than fifteen years, and and there are many diverse elements con- verging.