Video Codec
Last updated: May 07, 2026
Enveu take
AV1 is technically compelling — royalty-free with better compression than H.264 — but adoption remains limited in practice. Most operators we speak to hit two blockers: device compatibility uncertainty across their existing subscriber base, and the higher transcoding cost versus H.264. Until a platform has audited its device mix and confirmed meaningful AV1 hardware decode coverage, the business case is hard to justify. For most mid-sized OTT operators today, H.264 remains the pragmatic choice with AV1 on the roadmap.
AV1 is a royalty-free open-source video codec developed by the Alliance for Open Media (AOM) — a consortium including Google, Apple, Netflix, Amazon, and Meta. It achieves 30–50% better compression than H.264 and comparable or better compression than H.265 (HEVC) — with no licensing fees. AV1 is the codec of choice for large-scale streaming platforms optimising CDN delivery costs, and is increasingly supported across modern devices, browsers, and smart TVs.
Royalty-free
Open-source
Better than H.265
Alliance for Open Media
Next-gen codec
Where it fits in OTT stack
Source Video
AV1 Encoder
Multi-Codec Ladder
Codec Negotiation
CDN Edge
Device Playback
How it works
- Source video is fed into the AV1 encoder — hardware GPU-based or cloud transcoding service for practical speed at scale.
- The encoder compresses video using AV1's advanced prediction, transform, and entropy coding tools — producing output at significantly lower bitrate than H.264 or H.265 at equivalent quality.
- AV1-encoded renditions are added to the multi-codec bitrate ladder alongside H.264 and H.265 renditions.
- HLS or DASH manifests are generated listing all available codec and bitrate combinations per rendition.
- When a viewer starts playback, the player queries the device for AV1 hardware decode support.
- AV1 renditions are served to supported devices — H.265 or H.264 fallback served to unsupported devices.
- The CDN serves the appropriate codec rendition from edge cache — AV1 segments are smaller, reducing egress cost per stream.
Key components
- AV1 encoder — hardware GPU or cloud transcoding service (e.g. AWS MediaConvert, Bitmovin) for practical encoding speed
- Multi-codec bitrate ladder — AV1 renditions alongside H.265 and H.264 fallback for full device coverage
- Codec negotiation layer — player-side detection of AV1 hardware decode support per device
- HLS/DASH manifest — lists codec-specific renditions so the player can select AV1 where supported
- CDN — distributes AV1 segments globally; smaller segment sizes reduce egress costs vs H.264
- Device support matrix — documented list of AV1-capable devices in the platform's target audience
- QoE monitoring — codec-level tracking of bitrate, buffering, and quality per delivered rendition
Performance impact
- 30–50% better compression than H.264 at equivalent quality — directly reduces CDN egress costs for AV1-capable viewers
- ~20–30% better compression than H.265 — meaningful bandwidth saving even versus the previous generation codec
- Zero royalty cost — no licensing fees regardless of stream volume, unlike H.265 patent pool costs
- Smaller segment sizes reduce CDN storage and egress costs — savings compound with audience scale
- Hardware decode on modern devices means no playback performance penalty despite higher codec complexity
- Encoding cost is higher than H.264/H.265 — hardware GPU encoders required to make transcoding practical at scale
Common issues
- Encoding speed — software AV1 encoding is 40–100x slower than H.264; hardware encoder acceleration is non-negotiable for production pipelines
- Device fallback gaps — serving AV1 to devices without hardware decode causes high CPU usage and potential playback failures; device detection must be reliable
- Manifest complexity — multi-codec ladders (AV1 + H.265 + H.264) increase manifest size and player negotiation complexity
- iOS limitations — Apple devices have limited AV1 hardware decode support on older models; H.265 or H.264 fallback required for iOS coverage
- Live AV1 encoding — real-time AV1 encoding for live streams requires dedicated hardware encoder appliances; not yet practical with software encoders
- Older smart TV compatibility — pre-2020 smart TVs typically lack AV1 hardware decode; assuming AV1 support without device detection causes playback failures
When AV1 is the right codec choice
- New encoding pipeline builds where long-term codec strategy is being defined — AV1 should be included from the start
- Platforms with significant CTV and modern Android audience where AV1 device support is confirmed
- High-volume VOD catalogs where CDN egress costs are a significant operational expense
- Platforms currently using H.265 who want to eliminate patent licensing complexity without sacrificing compression efficiency
- YouTube, Netflix, and Amazon-style scale where CDN cost reduction from AV1 is worth the encoding investment
Signals your platform is ready for AV1
- CDN costs growing faster than audience — AV1 compression gains will reduce per-stream delivery cost
- Majority of subscriber device audit shows 60%+ AV1 hardware decode capable devices
- H.265 licensing cost evaluation in progress — AV1 eliminates the licensing complexity entirely
- New encoding pipeline or catalog re-transcode project underway — ideal time to add AV1 renditions
- Competitors delivering equivalent quality at lower bitrate — likely using AV1 or H.265 with better ladder configuration
Real-world example
An OTT platform adding AV1 to its encoding pipeline to reduce CDN costs at scale
A mid-sized SVOD platform with 800,000 active subscribers was delivering all content in H.264. CDN delivery costs were growing at 18% per quarter as audience scaled. The platform evaluated H.265 and AV1 as cost reduction options.
Challenge
- H.264 delivery costs were scaling linearly with audience growth — no compression efficiency gains since platform launch.
- H.265 evaluation was deprioritised due to licensing fee complexity across multiple patent pools.
- AV1 encoding was initially dismissed as too slow — software encoding was 40x slower than H.264.
- Device support uncertainty — no clear picture of what percentage of subscribers had AV1-capable devices.
- Existing transcoding pipeline had no AV1 output support.
Action taken
- Audited subscriber device data — found 67% of CTV viewers and 58% of Android mobile viewers had AV1 hardware decode support.
- Added AV1 transcoding using cloud GPU-based hardware encoders — reducing encode time from hours to minutes per title.
- Built codec negotiation into the player — AV1 served to supported devices, H.264 as fallback.
- Launched AV1 delivery for the top 500 most-watched titles first — prioritising catalog by view hours.
- Monitored CDN egress by codec to measure cost reduction per AV1-delivered stream.
Outcome
AV1-delivered streams reduced average bitrate by 34% versus H.264 at equivalent quality. CDN costs for AV1-capable devices dropped by 29% within 90 days. AV1 transcoding cost was offset by CDN savings within 6 weeks. Platform is now rolling out AV1 across the full catalog with H.264 fallback maintained.
FAQs
What is AV1?
AV1 (AOMedia Video 1) is an open-source, royalty-free video codec developed by the Alliance for Open Media — a consortium including Google, Apple, Netflix, Amazon, and Meta. It delivers 30–50% better compression than H.264 and comparable or better compression than H.265, with no patent licensing fees.
What is the difference between AV1 and H.265?
AV1 and H.265 deliver similar compression efficiency — AV1 is approximately 20–30% more efficient than H.265 at equivalent perceptual quality. The key difference is licensing: H.265 involves complex patent pools with licensing fees, while AV1 is completely royalty-free. AV1 encoding is more computationally intensive than H.265, but hardware encoder support has grown rapidly. For new encoding pipelines, AV1 is increasingly the preferred choice over H.265.
What is AV1 encoding?
AV1 encoding is the process of compressing video using the AV1 codec — producing a compressed output stream that delivers high quality at significantly lower bitrate than H.264 or H.265. AV1 encoding is more computationally intensive than H.264 or H.265 encoding, requiring hardware encoder acceleration (GPU or dedicated ASIC) for practical use in OTT transcoding pipelines at scale.
Which devices support AV1?
AV1 hardware decode is now supported on most modern smart TVs (Samsung, LG, Sony), Android devices running Android 10+, Chromebooks, Xbox Series X/S, PlayStation 5, and Apple devices with M1 chip or later. Web browsers including Chrome, Firefox, and Edge support AV1 playback via software decode. Older smart TVs and iOS devices have more limited AV1 support — H.264 or H.265 fallback is required for full device coverage.
Should OTT platforms use AV1 or H.265?
For new encoding pipelines, AV1 is the better long-term choice — royalty-free, better compression, and growing hardware support. H.265 has broader device support today, especially on older smart TVs and iOS devices. Most platforms adopt a multi-codec strategy: AV1 for supported modern devices, H.265 for Apple and older CTV devices, H.264 as the universal fallback. The decision depends on your audience's device mix and the relative weight of licensing costs vs encoding complexity.
What is AV1 transcoding?
AV1 transcoding is the process of converting existing video content from another format (typically H.264 or H.265) into AV1 codec output — producing AV1-encoded renditions for inclusion in a multi-codec bitrate ladder. AV1 transcoding requires significantly more compute than H.264 transcoding — cloud GPU-based hardware encoders are the practical solution for OTT platforms transcoding large content libraries.