Hotswap uses a compression technology to transform
those fuzzy YouTube videos into HD-quality. Hotswap is currently applying for a patent.
Interestingly, the company's focus in the short-term is on e-commerce--despite the fact that it
could be used for any Web video genre. This is partly because McCombs' AutoNation chain of auto dealerships is one of the first companies to strike a deal with Hotswap, which will create high-def
images of its cars.
"With their compression technology, they are able to drastically shorten the upload time-frame, which is critical," says one AutoNation exec. says Luke Thomas, the company's chairman, believes the auto industry will be a steppingstone to more e-commerce deals. "You will see e-commerce take off with the advent of high-quality video," he says.