Streaming services use codecs to compress large video files so they’re playable over the internet. These codecs play a huge role in your content’s image quality and are the reason for the streaming vs. physical media debate and why many people still prefer buying Blu-ray and 4K UHD discs.

Most of us don’t think of codec formats despite using them daily for watching YouTube videos or streaming movies and shows. It’s still worth knowing how they work and what they do if you’d like to optimize your viewing experience. So here are the different formats streaming services use and the differences between them.

What are streaming codecs?

The hidden engines running your content

Streaming services need to send massive videos to your devices over the internet. It’s impossible to send the entire file in one go, so it’s broken into smaller chunks, which are more manageable and can work well over various bandwidth speeds. Streaming codecs are the tools that compress video and audio files, so they can be efficiently transmitted to your phone or TV while retaining decent image quality.

How do streaming codecs work?

Encoding and decoding data across the Internet

Streaming codecs must encode and decode any video they’re playing. Encoding means they strip the massive RAW video file of unnecessary details, like similar frames, and other information before sending it to your device.

Your device then receives the encoded information and decodes it into the content you’re watching. The process ensures a certain level of quality and efficiency, but some details are often lost to support the smaller bitrates.

Common codecs streaming services use

How platforms play videos

Streaming services typically use one of these five codec formats for playing videos. Each works uniquely and has its own pros and cons.

H.264/AVC (Advanced Video Coding) (2003)

H.264 is the most common standard, adopted by many mainstream services, including YouTube, Hulu, and Netflix. It’s compatible with a wide range of devices and offers high-quality video at lower bitrates. However, it uses significant processing power, and streaming platforms must pay a flat fee of around $4.5 million a year in licensing fees if they have over 100 million subscribers.

VP9 (2013)

VP9 is a free and open-source alternative to H.264.AVC. It has many of the same features, like amazing visuals at lower bitrates and wide compatibility with most devices. Like H.264.AVC, it requires significant resources to run well, but it’s worth it for 4K and 8K resolution support. Streaming platforms, like Netflix and Amazon Prime Video, often use VP9 to stream to web browsers and mobile devices.

H.265/HEVC (High Efficiency Video Coding) (2013)

H.265 is the successor to H.264, designed to support 4K and 8K resolution. It does this with efficient compression, which almost halves the required bitrate for high-resolution image processing. The drawbacks are that it requires significantly more processing power and has complex licensing requirements. However, it’s still widely adopted by most modern devices, like phones and tablets, computers, and gaming consoles.

AV1 (2018)

AV1 is a newer codec that’s an alternative to more established versions like H.264/AVC and VP9. It’s developed by a consortium of platforms, including Netflix, Google, and Amazon, as a free, open-source codec that delivers superior compression while maintaining similar image quality to its rivals. This codec is best for fast, high-detail scenes, but support is limited to newer devices.

H.266/VVC (Versatile Video Coding) (2020)

H.266/VVC is the latest evolution of the H.265 codec that offers significant improvements, but still requires a licensing fee. It offers better efficiency and can maintain high-resolution picture quality over lower bitrates. It also supports the latest visual standards, like HDR and 12-bit color, and delivers superior results to its predecessor.

Why do physical discs have better picture quality than streaming services?

Instantly-accessible data

Physical discs contain all the movie’s raw video and audio data in a single, easily accessible location. Your player then accesses the file and plays it in its true form without any loss or compression. This results in consistent, high-resolution video quality throughout the movie.

Streaming services compress a movie’s video files using the codecs above. This process strips content of its details to prioritize efficiency, and image quality can be inconsistent, depending on your internet bandwidth. Streaming might surpass physical media one day, but right now there’s a clear winner when it comes to picture quality.

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