NEW EDIG

[cksla]

a few selected passages from some of my recent postings, with annotation as to the relevence vis a vis Philips.

That's where On2 comes into the equation. On2 VP codecs provide the opportunity for AOL and Sony (and numerous other less significant operators) to deliver their video initiatives without being servile to Microsoft. It also doesn't hurt that On2 VP codec products also demonstrate clear, qualitative superiority over video codec products Microsoft is pushing. What was that word I used earlier? Compelling? You got it. AOL got it. Sony got it. Pretty soon a lot people will get it.

Now Phillips Got it.


How significant is On2's advantage? Perhaps insignificant if one supposes that the technology transformation we are discussing is years away from happening. I highly doubt that. I think when it comes to next generation video that we are now peering over the edge of a volcano which is just waiting to erupt. This volcano has been smoking for three years. The pressure has been and continues building for it to blow from innumerable sources. Its going to happen and when it does it will produce a veritable flood of business for companies properly positioned to respond.

Philips just stoked those volcanic pressures quite a bit higher. Hmmm... Equator DSPs, TI DSPs, Philips Media Processors, On2 client SNE starting its own major chip foundry with Toshiba, On2 supplying MCS Japan (partly owned by NEC) with the VP codecs... Turn up the heat.

From my perspective I can't imagine being better positioned right now for what is to come. I spoke of the imminent arrival of convergence technologies and new media distribution models. That's just part of what's coming. What else is coming exists on a more cosmic scale: the head to head confrontation between the Microsoft axis and the AOL/Sony alliance across multiple markets. Microsoft has serious designs in staking out a controlling position in digital media delivery, which in turn if successful will give it a controlling position over content. AOL and Sony, both for common and somewhat distinct reasons, share a mutual imperative to keep Microsoft from grabbing too much turf.

Philips essentially just joined the SNE/AOL Time Warner Alliance. The importance of SNE and Philips, both world leaders in electronics, both erstwhile MPEG4 patent holdrers, along with AOL Time Warner, committing to On2 signals that the cosmic forces are aligning as I have foretold for well over two years. Plain and simple, what you are witnessing, and what the fools and morons who pop up here periodically can't/don't comprehend, is the birth of new video compression standard.