What is a Video Codec?

Alexander Dydychkin
9 min readFeb 21, 2020

A small article about how the video codecs work and why this software is very important for the modern media industry.

Background: the idea for this article was born out of a discussion with my friends about media software: how it works and why it’s important. After that, I understood that what’s really needed is a short, simple article about it. So here I’ve explained why we need codecs and given an overview of how they work.

Update 04.2021: Changed name of article, fixed some spelling issues.

Photo by veeterzy on Unsplash

Unclear abbreviations

AVC, VP8, VP9, HEVC and modern AV1, VVC — what are all these? And why so many of them?

All these ‘unclear abbreviations’ are different codecs. They can be divided into two groups:

  • MPEG LA royalty: AVC ->HEVC -> VVC
  • Open source and royalty free: VP8 -> VP9 -> AV1

The comparison of codecs would make a good topic for another article, but here I’ll just share some key facts:

  • Current popular codecs are AVC (H.264) and VP9 (used in all popular streaming services, such as YouTube)
  • HEVC (H.265) is a good high-efficiency codec released in 2013. In spite of its efficiency, HEVC never really took off in popularity because of its failed licensing policy.
  • AV1 is a modern and totally free codec. The first stable release was on the 28th f March, 2018. It is actively integrated in services like YouTube, Netflix, etc.
  • VVC (H.266) is the successor to HEVC. It is the most efficient codec on the current market, and is expected to be finalised and approved in July 2020.

All the above facts are relevant and correct at time of writing (early 2020)!

As you can see there is a variety of codecs, all of them continuously evolving and competing.

Why Codecs Were Developed

First of all, we have to understand why we need codecs:

If we turn on our video camera to record a typical two-hour film without any compression we will have an RGB file. Let’s calculate its size:

Given parameters:

  • Length of the film: 2 hours
  • Frames per second: 30
  • Resolution: 1920x1080
  • Color format: RGB

2 * 3600 * 30 * 1920 * 1080 * 3 = 1343692800000 bytes

Or 1.22 TB! How many TBs are in your computer?

Whereas if we use HEVC to compress the movie in example above, we can reduce its size down to around 2.5GB — that’s 500 times smaller! And that’s without changing the resolution or the frame rate, and without any dramatic reduction in quality.

Problem Identified. How Can It Be Fixed?

Ok, I hope you see the problem: raw streams are very, very big. And they will only get bigger thanks to increased resolutions, frame rates, length, effects (like HDR) and so on.

So we need some compression technologies, but what can we do? We know from basic theory that there are two types of compression:

  • lossless
  • lossy

Plus different color formats can be used too.

Color formats

Bright/luma encoding (.yuv) is used in most cases instead of RGB format.

Why so? There is scientific research in which the human eye is described as more sensitive to luma (brightness) than to color. So we can save some bytes per pixel. For example, a popular format of encoding is 4:2:0 (1.5 bytes per pixel) — chrominance components have half the horizontal and vertical resolution of luminance components (from the book ‘H.264 Advanced Video Compression Standard’ by Iain Richardson). Remember that this format is only for storage: when you see the film your videocard converts YUV to RGB.

Lossless compression

Let’s emulate lossless compression (and it is used — see VLC) and see how good an outcome we can get:


  • Raw video file with YUV color format: vicue_test_1920x1080_420_8_500.yuv
  • Size: 1,44 GB (1 555 200 000 bytes)
  • Number of frames: 500

I use 7zip with the following settings:

  • Format: 7z
  • Level of compression: Medium
  • Method of compression: LZMA2
  • Dictionary size: 16 MB
  • Size of word: 32


  • vicue_test_1920x1080_420_8_500.7z
  • Size: 301 MB (316 626 856 bytes)
  • The compression rate is almost 5:1. Not ideal…

Conclusion: in the above example, the compression rate was good (5:1) but we can still do better.

Lossy Compression: Reference Test

How well can modern encoders compress the video file?

Let’s try to answer this question: for a useful and comparable result, we can encode the same .yuv with HEVC using ffmpeg:

ffmpeg -f rawvideo -pix_fmt yuv420p -s:v 1920x1080 -r 25 -i vicue_test_1920x1080_420_8_500.yuv -c:v libx265 output.mp4


  • output.mp4
  • Size: 12,5 MB(13 168 899 bytes)
  • Compression ratio 118:1!
  • Raw log of ffmpeg:
Input #0, rawvideo, from 'vicue_test_1920x1080_420_8_500.yuv':
Duration: 00:00:20.00, start: 0.000000, bitrate: 622080 kb/s
Stream #0:0: Video: rawvideo (I420 / 0x30323449), yuv420p, 1920x1080, 622080 kb/s, 25 tbr, 25 tbn, 25 tbc
Stream mapping:
Stream #0:0 -> #0:0 (rawvideo (native) -> hevc (libx265))
Press [q] to stop, [?] for help
x265 [info]: HEVC encoder version 3.0_Au+7-cb3e172a5f51
x265 [info]: build info [Windows][GCC 8.2.1][64 bit] 8bit+10bit
x265 [info]: using cpu capabilities: MMX2 SSE2Fast LZCNT SSSE3 SSE4.2 AVX FMA3 BMI2 AVX2
x265 [info]: Main profile, Level-4 (Main tier)
x265 [info]: Thread pool created using 8 threads
x265 [info]: Slices : 1
x265 [info]: frame threads / pool features : 3 / wpp(17 rows)
x265 [info]: Coding QT: max CU size, min CU size : 64 / 8
x265 [info]: Residual QT: max TU size, max depth : 32 / 1 inter / 1 intra
x265 [info]: ME / range / subpel / merge : hex / 57 / 2 / 2
x265 [info]: Keyframe min / max / scenecut / bias: 25 / 250 / 40 / 5.00
x265 [info]: Lookahead / bframes / badapt : 20 / 4 / 2
x265 [info]: b-pyramid / weightp / weightb : 1 / 1 / 0
x265 [info]: References / ref-limit cu / depth : 3 / on / on
x265 [info]: AQ: mode / str / qg-size / cu-tree : 2 / 1.0 / 32 / 1
x265 [info]: Rate Control / qCompress : CRF-28.0 / 0.60
x265 [info]: tools: rd=3 psy-rd=2.00 rskip signhide tmvp strong-intra-smoothing
x265 [info]: tools: lslices=6 deblock sao
Output #0, mp4, to 'output.mp4':
encoder : Lavf58.26.101
Stream #0:0: Video: hevc (libx265) (hev1 / 0x31766568), yuv420p, 1920x1080, q=2-31, 25 fps, 12800 tbn, 25 tbc
encoder : Lavc58.47.102 libx265
frame= 500 fps=5.4 q=-0.0 Lsize= 12860kB time=00:00:19.88 bitrate=5299.3kbits/s speed=0.217x
video:12854kB audio:0kB subtitle:0kB other streams:0kB global headers:2kB muxing overhead: 0.049566%
x265 [info]: frame I: 4, Avg QP:27.84 kb/s: 6871.70
x265 [info]: frame P: 456, Avg QP:30.31 kb/s: 5370.48
x265 [info]: frame B: 40, Avg QP:33.20 kb/s: 3891.26
x265 [info]: Weighted P-Frames: Y:4.8% UV:4.2%
x265 [info]: consecutive B-frames: 91.7% 7.8% 0.4% 0.0% 0.0%
encoded 500 frames in 91.77s (5.45 fps), 5264.15 kb/s, Avg QP:30.52
Pic.1: Screenshot of frame from original YUV
Pic.2: Screenshot of frame from HEVC stream

There are some small changes between pic.1 and pic.2, but in general the quality is the same and the file size is reduced to 12.5 MB. This proves the importance and effectiveness of codecs.

Lossy compression: explanation

‘If we use lossy compression we lose the quality.’ While this is true, there are some technologies and techniques which can help us achieve an almost (or completely) unnoticeable loss in quality.

The main techniques to save bytes are as follows:

  • Similar elements in a frame can be ‘inherited’ from another place in the same frame (called intra prediction)
  • The same concept of ‘inheriting’, but taking place between different frames (inter prediction)
  • Quantization

For people who know Git VCS well, the idea is the same: saving not entire file either only the delta (diff) of the file.

Process of encoding

So next we can look at this diagram, which shows the high-level encoding process:

Pic.3: High-level view of encoding process of abstract encoder

Explanation of Pic.3 — the Encoding Process:

1. As the input we have the source video file, for example with extension .yuv. To begin encoding we take 1 frame from the video. Each frame should be divided into blocks. For each block we calculate (in parallel!):

2. [parallel] Motion estimation (ME) (inter) — the encoder searches for blocks which can be ‘inherited’ from blocks in another frame or frames

Pic.4: Representation of ME in encoded streams, visualized by the VQ Analyzer 4.2.0 (av1 stream)

3. [parallel] Intra prediction — the encoder searches for blocks that can be ‘inherited’ from blocks within the same frame

Pic.5: Representation of intra prediction in encoded streams, visualized by the VQ Analyzer 4.2.0 (vvc/h.266 stream)

4. After the calculation of the motion estimation and intra prediction, the encoder makes a decision and chooses which prediction is more profitable (based on saving bytes and quality).

5. From this step onwards, we work with predictions (not source images). Another words prediction is the result of the process which gives us artifact with minimal residual.

6. The residual is all the data that we cannot predict. The conditional formula for residual is: source_block — prediction_block=residual_block

7. At this step our goal is to reduce residual. The encoder does it with algorithms like DCT. The principle of DCT is to maximize the characteristics of a picture with minimal coefficients. It has strong ‘energy compaction’ properties: most of the signal information tends to be concentrated into a few low-frequency components of the DCT (thanks Wikipedia), which improves the efficiency of the subsequent quantization process (it reduces loss of quality and improves compression in most cases).

Here’s a good visualization of a matrix after DCT:

Source: http://www.pcs-ip.eu/index.php/main/edu/5

8. Quantization — may be used to reduce the precision of image data after applying a transform, such as the DCT, and to remove insignificant values such as near-zero DCT (from the book H.264 Advanced Video Compression Standard, Iain Richardson). In other words, it is a simple reduction of values: matrix_of_coefficients/matrix_of_constants. At this step, the video stream gets maximum lossy effect. Here’s a formula-example of the process (in pseudo-C++ language):

quantized_coefficient[i] = round(coefficents[i]/q_step[i])


  • quantized_coefficient — vector of coefficients after quantization
  • coefficents— vector of coefficients after DCT
  • q_step— vector of constants (or dynamical values in modern codecs) which are part of codec specification.

9. Yeah, it is a decoder in an encoder. In each encoder there is a decoder. It is needed to predict the following frames. The frames should use predictions from already encoded blocks (otherwise we wouldn’t benefit), so that is why the encoder needs a decoder.

10. and 11. Encoder sums: residual*(5)+prediction(9)=reconstructed_frame. As a result encoder gets almost source frames to put them into Decoder Picture Buffer (DPB). DPB is a buffer of the fixed maximum size where stored reference frames which will be used for ME (step 2).

12. When the frame/block is ready we can use entropy coding algorithms (for example CABAC).


As we can see, codecs are complex software that use a wide range of technologies (a modern codec like VVC even uses some elements gained from the world of machine learning). Their development is always ongoing, thanks to a wide range of areas for improvement and evolving techniques. Finally, codec evolution is continuously pushed by the market with its increasing appetites like higher resolutions (fullhd-4k-8k-16k), 360 video, higher frame rates (30–60) and special effects (like HDR) but in the same time with smaller bandwidth cost.

Thanks for reading! I hope that this article was useful.

Recommended literature

  • Iain E. Richardson — H264 (2nd edition)

Special thanks

  • Nikolai Shostak
  • Vitaliy Chemezov
  • Alexey Fadeev