As far as I know, they are one of the few video game compression companies out there. Undoubtedly this is amazing news for Unreal Engine 4 devs, but for those not using the engine this is going to be a bit of a blow.
On the plus side, this opens the doors for a "Pied Piper, but for games" style startup to come out of nowhere and take big market share.
"RAD will continue supporting their game industry, film, and television partners, with their sales and business development team maintaining and selling licenses for their products to companies across industries - including those that do not utilize Unreal Engine." - the article
How long this will last is anybody's guess, of course.
Pied piper did have a whole subplot about compression in the context of reducing VR video game bandwidth latency. You might be more spot on than you think :)
On the plus side, this opens the doors for a "Pied Piper, but for games" style startup to come out of nowhere and take big market share.