On2 is a small company, and it is doing really well with VP62 & VP70 ... so it makes more business sense for them to concentrate in an area where they r making good inroads rather that something new ...
This is how the market is ...
Audio:
MP3 dominates ... WMA is doing well for Microsoft ... after the iPod came in with iTunes and m4a using AAC, things r pretty saturated ....
Video: There wasnt anything much other than MPEG4 & MPEG4 derivatives, and real & QT (which were both AVCs (MPEG4 part10) .... n these codecs werent being used much commercially as in licensed n all ...
Then On2, hits the jackpot with VP62 being used in game videos, the Flash video, skype, etc. ....
Now we have HD coming up ... HD is the next big thing & HD over the net is even bigger n a big challenge for everybody .... now On2 is teaming up with abc and r planning to deliver HD over the web using a highly optimized VP70 variant ... n this is gonna be big ...
On2 r primarily a video codec company n have been developing VPXX codecs from the past decade ... it makes more sense for them to continue doing that ... especially when they r making inroads n becoming industry leaders n getting the recognition they deserve!!!