According to the announcement Friday, Hosting Marketers, which currently hosts more than 11,000 web sites in the US between its three data centers, ordered the implementation of ffmpeg and related libraries on all its servers.

FFmpeg software can record, convert and stream digital media in numerous formats including lossless FFV1.

''As new technologies continue to emerge, hosting providers are forced to allocate additional budget to remain technologically competitive," Hosting Marketers managing director Paul Santos said in a statement. "But in the current economic climate, this is becoming unsustainable and hosts are waking up to the inherent benefits of outsourcing key parts of their IT infrastructure. By partnering with Hosting Marketers, video site webmasters can take advantage of this market opportunity.''

According to statistics cited by Hosting Marketers, 1 percent in 2007 of worldwide enterprise sites use video hosting or Youtube-like services, but they predict this segment will grow to 20 percent by 2012 because of rising popularity.

Founded in 2003, Microsoft Gold Certified Partner Hosting Marketers hosts web sites and internet-based services for small and medium-sized businesses from its data centers in Houston and New York. According to Hosting Marketers, about half of its business comes from indirect channels.