On2 Technologies, Inc., and VitalStream, a streaming media solutions provider and international content delivery network, announced that they have partnered to create a single-source solution combining powerful, high quality Macromedia Flash Video encoding tools from On2 with VitalStream's global streaming and content delivery services for digital media enterprises.

As a result of this partnership, digital media enterprise customers - for the first time -- will be able to experience Flash Video through a high quality codec available in Macromedia Flash Player 8, integrated with global streaming media and delivery solutions. The partnership enables the creation and delivery of pristine quality digital media content in what is quickly emerging as the fastest adopted format for streaming over IP - Macromedia Flash Video.

"Combining the ubiquity of Flash Player with the Flash Media Server 2 software makes the Flash Platform a superior way to deliver seamless, instant- on web video experiences to millions of viewers worldwide," said Chris Hock, director of product management, Macromedia. "With 's On2 and VitalStream announcement, we're seeing the Flash Platform fuel valuable new partnerships for Flash Video creation and delivery services for global media enterprises."

"On2 has made significant strides in accelerating the adoption of what we believe is the digital media industry's most viable and compelling IP video format, Flash Video. To date, we've succeeded in providing the worldwide community of Flash developers with a high quality codec available in Macromedia Flash Player 8. With the VitalStream partnership, we are raising the stakes by offering a complete, end-to-end Flash Video creation and delivery service for the world's largest purveyors of digital media content," said Doug McIntyre, chairman, president and chief executive officer of On2 Technologies.

"VitalStream serves as the delivery vehicle for some of the world's largest digital media enterprises," added Jack Waterman, chief executive officer of VitalStream. "Partnering with On2 enables us to provide another first to these global enterprises. We're offering an unparalleled workflow that combines high quality content creation with our vast digital media delivery capabilities."

As part of the agreement, On2 and VitalStream have entered into a combined reseller and OEM arrangement in which VitalStream will actively market and sell On2's Flix family of Flash 8 video authoring solutions. Additionally, On2 will actively market and sell VitalStream's Flash 8 video streaming services to On2's Flix customer base.