On2 is showing off Flix Cloud, the company’s Amazon EC2 powered video transcoding service, at Streaming Media East 2009 this week in NYC.

The service uses Zencoder and the company’s own Flix Engine. Flix Cloud accepts a laundry list of popular video formats and generates the streaming formats listed below:

On2 VP6-E for Adobe Flash Player (FLV) & Sun JavaFX (FXM)
On2 VP6-S (HD) for Flash (FLV) & Sun JavaFX (FXM)
On2 VP6-E or VP6-S with alpha channel transparency (FLV)
H.264* for Flash, Apple iPhone/iPod, IPTV, HD
H.263+ (Spark) for Flash
3GP/3G2 for mobile
Windows Media Video 8

An available API allows for developers to integrate Flix Cloud into their apps.

The service employs a pay-as-you-go model ($1.75 per GB in, $2.25 per GB out). Naturally, there are a couple of caveats–Amazon S3 storage costs extra and H.264 licensing may be required if you go that route–but it may be just the ticket for organizations that don’t want to spend the money acquiring and powering transcoding equipment.

The company will also be demonstrating its On2 VP8 video codec, which promises to deliver H.264 quality streaming with half the bandwidth.