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On2.com Cuts Jobs, Refocuses on Technology not Content

It seems producing and gathering content for the broadband Internet market is an expensive proposition. Too expensive for On2.com (http://www.on2.com). Today On2.com said it was cutting jobs in its video production area and refocusing its company on its core video compression technology.

On2.com's broadband site will now be a showcase, says the company. It will immediately de-emphasize producing its ownvideo content in house, too.

"In the short time I have been with On2, it is evident to me that ourfuture is in being a technology provider to the full broadband segment of theInternet,"We want to bethe supplier of tools that deliver the highest quality Web experience tobroadband users, and many of the companies who will use our products arecontent providers," said On2.com President and CEO Douglas A. McIntyre.

"Competing with our customers," McIntyre said, "is a clear roadblock to doing business. Rather, displaying their best work at On2.com, as an example of what our compression technology and broadband can do, makes tremendous sense and is in the best long-term interests of the company and our shareholders."

Another technology company, Pixelon.com (http://www.pixelon.com), recently self-immolated after its founder and former Chairman Michael Fenne was found to be a fugitive called David Kim Stanley. Pixelon, like On2.com, was putting up broadband content when it first launched but later had to back away when acquiring content was getting too expensive. Pixelon subsequently cut many jobs and was in the process of reorganizing itself when Stanley came forward and surrendered to authorities.

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