On2 Technologies, Inc. today announced that it has launched its TrueMotion VP7 codec software.

The new codec software is available as a Video for Windows (VFW) plugin or integrated with the On2CompI Encoder application.

On2 is offering 10-day trial downloads for both encoding products so customers can test the software before deciding to purchase. These downloads are available at the company’s website, http://www.on2.com/. Licenses for the software are for sale in On2’s online store, also at http://www.on2.com/. The company is selling personal-use as well as small business and enterprise licenses.

On2’s internal testing found that the TrueMotion VP7 encoder produces results that are up to 30% better than its current flagship VP6 product and up to 35% better than Windows Media 9, Real 10, and most implementations of H.264. Test results and clips using VP7 are also available at the On2 website.

The company also released its new TrueCast 8 Server and TrueCast 8 Player for Windows software. The TrueCast 8 products are designed to work with the TrueMotion VP7 codec but are also backwardly compatible with previous versions of TrueMotion. The TrueCast 8 Player software is available for free at http://www.on2.com/.

“After nearly two years of work, we have produced a codec and compression software that will allow businesses and consumers to get better quality video at lower datarates than any other codec technology available on the market today,” said Eric Ameres, On2’s Executive Vice President and Chief Technology Officer.

“Enterprise license costs will continue to be competitive with other companies in our business and our personal use license fees should make this codec accessible to anyone who wishes to use it for compressing their own content,” added Tim Reusing, On2 Executive Vice President of Business Affairs.

“We have continued to innovate in the codec space,” said Douglas A. McIntyre, On2’s Chairman, President and Chief Executive Officer. “While other companies have slowed or halted the improvements of their products, we continue to believe that improvement is core to adoption of video on PCs, portable devices, in cars, and in enterprises that use video for surveillance, conferencing and other business-to-business applications. For these, having the best product means a great deal to the user.”