Theora is an open video codec being developed by the Xiph.org Foundation as part of their Ogg project (It is a project that aims to integrate On2's VP3 video codec, Ogg Vorbis audio codec and Ogg multimedia container formats into a multimedia solution that can compete with MPEG-4 format). Theora is derived directly from On2's VP3 codec; currently the two are nearly identical, varying only in framing headers, but Theora will diverge and improve from the main VP3 development lineage as time progresses.
Theora is targeted at competing with
MPEG-4 (e.g.,
XviD and
DivX),
RealVideo,
Windows Media Video, and similar lower-bitrate video compression schemes.
Theora (and all associated technologies released by the Xiph.org Foundation) is released to the public via a BSD-style license. It is completely free for commercial or noncommercial use. That means that commercial developers may independently write Theora software which is compatible with the specification for no charge and without restrictions of any kind.
Like other Xiph.org Foundation codec projects such as Vorbis or Tarkin, Theora is named after a fictional character. Theora Jones was the name of Edison Carter's 'controller' on the television series Max Headroom. She was played by Amanda Pays.