Best Video Codec for Streaming in 2025
Discover the top video codecs for streaming in 2025. Compare quality, compression, and performance to choose the best codec for your content delivery.

Streaming large videos with high resolution without compromising their quality seemed like a dream once. But not with video codecs!
If not for codecs, viewers may not be able to stream large videos seamlessly. Video codecs manage to reduce the file size without impacting its streaming quality. In this blog, you will learn more about video codecs and their types.
What is a video codec?
A Video codec is a software used to compress and decompress videos with the intention of reducing the file size and enabling easy storage. Codec simply means coder-decoder.
Large video files need a lot of storage and also impact streaming quality. Codecs reduce the storage needs without impacting the playback quality.
How do codecs work?
Codecs first analyze redundant frames, colors, etc., that can be removed to reduce video size. This process is called encoding or compression.
Encoding applies algorithms to analyze unnecessary data found in the video files. The remaining data are converted to videos that are of smaller size and easily streamable. Such data is stored in containers in MP4 or MOV format.
The next part is decoding, where the resultant videos are sent to the decompressor. This is the reverse process of encoding. The decoder reconstructs the video frames and fills in the missing details. The resultant video is smaller in size and streams seamlessly for the viewers to watch.
Why Are Video Codecs Important?
Why do you need video codecs? Read further to know.
1. Reduce file size
Large video files occupy a lot of storage space and may cause lag in streaming. Codecs are necessary to reduce the file size without impacting their quality.
2. Streaming quality
Codecs help maintain a high level of streaming quality when the internet connection is slower. This they do by reducing the file size.
3. Device compatibility
Support for devices is ensured with codecs as they maintain compatibility across various devices and streaming platforms.
4. Transmission speed
Codecs help accelerate the transmission speed as they compress the videos, making it easy to upload, share, and stream.
5. Reduction in storage cost
With reduced file size, storing them also implies lower cost.
6. High-resolutions videos
Codecs can help manage very high resolution videos like 4K to 8K.
Popular Video Codecs for Streaming
Some of the popular codecs in use are listed below. Compare the features before choosing the best one.
1. H.264/AVC
Also known as Advanced Video Coding (AVC), H.264 is a widely used format for encoding. It exhibits high-quality even at low bitrates.
One of its most impressive features is that it can be used for recording, encoding, and streaming videos across multiple devices like laptops, smartphones, smart TVs, tablets, etc.
With AVC for live streaming, you are assured of low latency, whereby viewers enjoy uninterrupted streaming.
Encoding with H.264 ensures a significantly smaller file size than the codecs from previous generations, such as MPEG-2.
Decoding is less stressful for CPUs as most devices have decoding support for H.264.
2. H.265/HEVC
Known as High Efficiency Video Coding, this succeeds H.264 but with an improved compression efficiency of almost 50%. It can maintain similar video quality to H.264.
Suitable for high-resolution videos, this codec requires low bandwidth for streaming. With H.265, you can watch complex motion sequences without any lag in quality.
With platforms like YouTube supporting HEVC, this is great for streamers looking for high-resolution streaming at lower bitrates.
One demerit that can be noted here is that HEVC finds use only in strong internet connections and advanced devices.
3. AV1
Developed and maintained by Alliance for Open Media (AO), this codec can offer compression efficiency at 30% more than HEVC. This is considered the future of codecs as it offers the highest quality videos in real-time, and is scalable.
One of the biggest advantages of AV1 is that it is open-source and royalty-free, which implies that creators can use it without any license.
AV1 efficiently handles parallel processing technology. It enables faster encoding and decoding, uses low bandwidth, and provides high-quality videos.
It can be used across various platforms and has the support of industry giants like Apple, Netflix, Amazon, and Microsoft.
4. H.266/VVC
Known as Versatile Video Coding, this was developed by the Joint Video Experts Team to improve compression efficiency over the H.265.
VVC supports HDR and 360-degree videos, making it highly futuristic. Unlike AV1, it is not open-source and has heavy licensing fees.
VVC can optimize bandwidth and storage, and is useful in live streaming and video conferencing.
It supports up to 4K streaming, but can stream more with its technological advancement, in the future. Even with a slow connection, VVC offers quality 4K streaming with minimum buffering.
H.266 can become the future of codecs with the development of compatible device hardware for encoding and decoding.
5. VP8
This is another open-source codec developed by On2 Technologies, acquired by Google. It offers highly efficient compression without compromising on streaming quality.
VP8 can be used across multiple streaming platforms as it is widely compatible. Also, it is supported by several web browsers.
Encoding with VP8 does not strain the CPU and has lower power consumption also.
VP8 is versatile, and the best thing about it is it is free to use. Though several newer versions show better performance, VP8 is equally efficient.
6. VP9
Yet another open-source, royalty-free codec, and an advanced version of VP8, is VP9. It has all the essential features like compatibility across platforms, efficient encoding, and free to use.
Developed by Google, this has been built to support 4K to 8K resolutions. VP9 can efficiently work with varying bandwidth, enabling seamless playback.
VP9 allows parallel processing and uses multiple prediction modes, thus facilitating efficient compression.
Latest devices allow hardware acceleration support for VP9, which helps in relieving stress in decoding, thereby leaving room for smooth playback.
Codec Comparison Table
Codec | Compression Efficiency | Royalty-Free | Best Use Case | Resolution Support | Device Support |
---|---|---|---|---|---|
H.264 | Good | ❌ | General streaming | Up to 1080p | Universal |
H.265 | Very High | ❌ | 4K streaming | 4K | High (but licensed) |
AV1 | Excellent | ✅ | Modern platforms | 4K–8K | Growing |
VP8 | Fair | ✅ | Basic streaming | 720p–1080p | Wide browser support |
VP9 | High | ✅ | YouTube, 4K | 4K–8K | Broad |
H.266 | Highest (future-ready) | ❌ | 8K, 360° video | Up to 8K+ | Limited (developing) |
How to Choose the right video codec
Exploring the above-mentioned list will give a glimpse of various codecs and their merits. To choose the right one to enable smooth video streaming, follow these points:
1. Compression efficiency
Codecs ensuring very high compression efficiency may result in low playback quality. Similarly, low efficiency can promise quality of streaming, but with a large file size. Choose one that is midway between these two qualities.
2. Budget
Certain codecs are open-source and thus are free to use without any licensing fees. These reduce the cost of investing in codecs. However, if you are to choose a codec for which a licensing fee is to be paid, it adds to the cost. Choosing codecs based on cost depends on your budget.
3. Integration
How compatible is the codec with easily integrating into various platforms, web browsers, and devices? Choose the codec based on the answer to this question. Comparing the list of codecs, AV1 seems the best fit here.
Conclusion
If you are looking for the best video codec, you should understand that it depends on several factors like the internet connection, streaming platform, content quality, etc. Make sure to test the different codecs on different devices and platforms so as to understand their efficiency.
More new codecs are being introduced with improved features. Stay updated to learn about them all and use whichever may be necessary.
Need help integrating the best streaming codec into your OTT platform? Contact our video experts at Enveu and get a personalized consultation.
FAQs
Is AV1 better than HEVC?
Yes, AV1 offers 30% more compression and is royalty-free. HEVC has broader hardware support.
What is the best video codec for streaming?
AV1 and H.265 are the best for high-quality, low-bitrate streaming.
What is the difference between H.264 and H.265?
H.265 offers twice the compression of H.264, with similar quality but requires more CPU power.
What is the best video codec for live streaming?
H.264 (AVC) is the best video codec for live streaming. It offers low latency, wide compatibility, and efficient compression—making it ideal for real-time broadcasts. Most streaming platforms and encoders support H.264, ensuring smooth delivery across devices.