MPEG-4. The race has started. Transmission of multimedia, especially video data, is both the problem and mainstream of telecommunications of the future. Video transmission requires high throughputs of the links, which should continuously grow due to higher and higher quality requirements. Every kind of transmission (satellite and terrestrial radio links, cable infrastructure, streaming) imposes bandwidth limitations, so the key issue is efficient data compression.
As an example, the popular satellite transmission protocol DVB-S/MPEG-2 (38 Mbps) allows transmission of 7 SDTV programs, whereas DVB-S2/MPEG-4/AVC system ensures transmission of 26 SDTV or 6 HDTV programs - all from one satellite transponder.
Stream transmission is still quite limited. Quick development of IPTV meets the barriers of typical throughputs of the most popular links, even on the most developed markets (e.g. Hong Kong - 5 Mbps, USA - 2Mbps). So when MPEG-4/AVC ensures 2 times higher compression level than MPEG-2, the choice is obvious.
MPEG-4/AVC will also solve the problem of the required spectrum for terrestrial transmission of HDTV programs.
Due to mass production of the codecs, license fees can reach billions of dollars. Currently the leader of second-generation codecs is still MPEG-4/AVC. But there are two serious competitors that would like to share the profits: WMV codec (VC-1 standard used in Xbox) developed by Microsoft, and Chinese AVS.