New Report Details the Transformational Potential in the Video Codecs Ecosystem

WILMINGTON, Del., April 19, 2023 (GLOBE NEWSWIRE) -- A recent white paper commissioned by InterDigital, Inc. (Nasdaq: IDCC), a mobile and video technology research and development company, and written by market research firm Futuresource Consulting, examines the foundational nature, state of evolution, and critical features of codecs and video standards, especially as video becomes ubiquitous and demand for video services and entertainment grows and diversifies.

The report, “The Evolution of Compression in a Video-First Economy,” outlines the development path of video compression codecs that have proven to be critical in reducing bandwidth and improving efficiency in the delivery of the data dense video services and entertainment we all enjoy. In simple terms, video codecs compress and encode video data into a format that is efficiently stored and can later be decoded and played back, and their capabilities underpin the ability to enjoy increasingly data-rich content across an array of screens and devices.

“Video is redefining the ways we communicate and the types of content we consume, and codecs are a critical tool to satiate our voracious demand for video more efficiently and resourcefully without compromising our perceived experience,” said Lionel Oisel, Head of Video Labs, InterDigital. “We continue to leverage our video compression and codec expertise through innovation and standards contributions that enhance our ability to stream high quality content and introduce novel ways to engage with video entertainment.”

Providing a 360-degree view of the video compression ecosystem, the report details the landscape of video compression technology and history of video coding standards, alongside the advantages of today’s codecs for video-powered experiences and potential impact for the future. Streaming a two-hour movie without compression would require more than 1.3TB of data, but the evolution of video compression techniques over the last 40 years now supports the seamless delivery of increased volumes of new types of video content and IP-based streaming services.

The report cites the broad transformational impact of video codecs, from state-of-the-art codecs enabling the delivery of ultra-high-definition content on IP-based streaming services, to innovation in compression techniques and AI integration reducing the computational load and latency to support immersive video applications like VR and AR, and the ability for video codecs to not only reduce storage and bandwidth but also use energy more sustainably.

“Video dominates internet traffic today, with over 3.5 billion internet users streaming or downloading some form of video at least once per month. Furthermore, there were 1.47 billion SVoD subscriptions globally at the close of 2022, with the sector posting a 12% increase in subscriber numbers year over year,” said Simon Forrest, Principal Technology Analyst, Futuresource Consulting. “The applications for video are expanding. Consumers spent around 11% of their time watching content from video sharing sites in 2022, up only 0.6% year over year, yet time spent viewing videos posted on social media increased by 24% over the same period. The research confirms that the industry requirement to utilize more efficient codecs is intensifying.”

The report spotlights Versatile Video Coding (VVC/H.266) as a standout video codec with a highly versatile design for use across an extended range of applications and capabilities far exceeding those of previous standards. VVC/H.266 offers an up to 50% bit-rate reduction over its predecessor HEVC/H.265 and boasts enhanced capabilities to efficiently transmit ultra-high-definition content, from 4K and 8K video to high dynamic range (HDR) content and 360° and immersive video formats. When comparing the current landscape of video codecs, VVC/H.266 is strongly positioned to support video-on-demand applications and offers the highest benefits in terms of bitrate savings while maintaining visual quality, according to a recent 3GPP study.

To read the white paper “The Evolution of Compression in a Video-First Economy,” please click here.

About InterDigital ^®

InterDigital develops mobile and video technologies that are at the core of devices, networks, and services worldwide. We solve many of the industry’s most critical and complex technical challenges, inventing solutions for more efficient broadband networks, better video delivery, and richer multimedia experiences years ahead of market deployment. InterDigital has licenses and strategic relationships with many of the world’s leading technology companies. Founded in 1972, InterDigital is listed on Nasdaq.

InterDigital is a registered trademark of InterDigital, Inc.

For more information, visit: www.interdigital.com.

InterDigital Contact:
Roya Stephens
Email: roya.stephens@interdigital.com
+1 (202) 349-1714