Who is Leading the Versatile Video Coding (VVC) Technology Race? 

Who is Leading the Versatile Video Coding (VVC) Technology Race?

March 2, 2021

Amid the COVID-19-driven surge in video sharing, software companies are updating their SEP portfolios for video codec patents, with Versatile Video Coding (VVC) leading the pack. VVC (H.266) boasts substantial advantages over predecessors like HEVC (H.265) and AVC (H.264), as well as competitors like AV1 and VP9. Finalized in October 2020, VVC improves video coding efficiency by up to 50% while maintaining perceptual quality, supporting 4K, 8K ultra-high definition, and high dynamic range. Its design caters to various applications.

This performance boost aligns with the growing importance of efficient video encoding. A study by Ericsson predicts that video’s share of mobile traffic will rise to 77%, driven by global access to high-speed internet, lockdown-induced video streaming, and emerging use cases like 360-degree gaming and remote surgery.

However, VVC’s widespread adoption faces challenges, including thousands of SEPs and potential royalty costs. Companies should assess each other’s SEP portfolios when joining VVC pools. The exact universe of VVC SEPs remains unclear, with incomplete patent declaration data from ITU-T and JVET. As of March 2021, only 23 companies had filed VVC-essential patent declarations.

Identifying VVC technology leaders involves analyzing companies’ involvement in VVC standard development. This report highlights top companies with approved VVC standard contributions, with over 8,000 VVC contributions gathered, of which about 1,100 were incorporated into the final standard as of March 2021.

Read the Report

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