Surging Demand for Online Video and New Delivery Options Drives Demand for an Additional Patent Pool of High Efficiency Video Coding

26 March 2015

News of the formation of HEVC Advance (www.hevcadvance.com) — an independent licensing administrator for High Efficiency Video Coding technologies that are not covered by existing patent pools – illustrates the speed at which demand for high-quality digital video is evolving, and the need to streamline market access to the latest innovations in this category of technology.

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News of the formation of HEVC Advance (www.hevcadvance.com) — an independent licensing administrator for High Efficiency Video Coding technologies that are not covered by existing patent pools – illustrates the speed at which demand for high-quality digital video is evolving, and the need to streamline market access to the latest innovations in this category of technology.

Industry analysts have documented huge gains in online video entertainment consumption across an array of platforms (TV, laptops, tablets, smartphones, etc.) and a variety of networks (broadcast, internet, wireless, etc.).  These dynamics are fundamentally altering the entertainment habits of consumers, which is in turn prompting content creators to explore new and better ways to deliver a high quality experiences in a variety of environments and situations.

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emarketerIndeed, research from eMarketer suggests that in the United States alone, the number of US digital TV viewers will reach 145.3 million in 2017, while analysts at Parks Associates report that approximately 50 percent of video content consumed by U.S. consumers non-linear services – such as from over-the-top (OTT) providers.

In Europe, online television and video subscription revenues (SVOD) will soar from $116 million in 2010 to $1,6 billion in 2014 and onto $5.5 billion in 2020, according to Digital TV Research.

“The digital media market stands at a pivotal point as innovations like HEVC enable rich next-generation experiences while helping solve industry limitations with delivering that experience,” explains HEVC Advance representative Peter Moller. “The market is requiring a different approach to aggregating and making HEVC essential patents available for license.”

Why?  Because access to the latest HEVC-enabled technologies are critical to fulfilling the high expectations consumers have for their next generation digital media entertainment experiences.  By adding a new pool of cutting edge technologies to the market, the entire community of interest – including content creators, distributors, service providers, device manufacturers and more – will be able to harvest opportunities to connect with consumers in new and meaningful ways.

OTT content and mobile video will benefit from HEVC’s reduced burden on the network and video congestion. Traditional services, such as broadcast, satellite and cable providers will benefit from improved performance at lower transmission rates and the ability to deliver more content per channel.

The initial list of licensors in HEVC Advance is expected to include GE, Technicolor, Dolby, Philips and Mitsubishi Electric. The HEVC Advance patent pool will formally launch in the third quarter of 2015.

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