ITU and ISO/IEC launch development of next-generation video coding standard

This initiative signals the start of the post-VVC era before VVC has achieved mass-market saturation. For engineers and strategists, it establishes the R&D roadmap for the next decade, specifically targeting the limitations of current standards in handling AI-generated content and low-latency XR applications. While VVC focuses on 4K/8K efficiency, this next generation is expected to integrate neural-network-based tools more deeply into the signal-processing chain. Watch for the January 2027 evaluation results to see if AI-native coding tools can finally deliver the rumored 30-50% efficiency gains over traditional block-based compression architectures.

The push for a 2029 standard arrives as the industry grapples with fragmented adoption of current technologies. While VVC (H.266) was finalized in 2020, production deployment remains at roughly 4% as of March 2026, per StreamingMedia reporting. High licensing costs and a lack of 'killer apps' beyond 8K have slowed VVC compared to the royalty-free AV1, which has achieved a projected 57% reach in 2026 due to aggressive support from Meta, Netflix, and YouTube. Access Advance recently moved to mitigate these headwinds by acquiring Via-LA's patent pools in late 2026 to simplify the licensing landscape.

Simultaneously, the Alliance for Open Media finalized its AV2 specification in May 2026, promising 30% bitrate savings over AV1. Per AOMedia, AV2 reached version 1.0.0 on May 28, 2026, and is already seeing hardware IP support from vendors like Allegro DVT and VeriSilicon. The ITU/ISO/IEC effort must therefore compete not only with the established H.264/H.265 legacy but also with a rapidly maturing open-source ecosystem that hit its next-gen milestone three years ahead of the JVET's 2029 target.

Beyond traditional human-viewable video, MPEG is pivoting toward specialized use cases. At its 153rd meeting in early 2026, the Video Coding for Machines (ISO/IEC 23888-2) standard progressed to Draft International Standard status. This shift reflects a broader industry trend where compression is increasingly optimized for AI tasks like object detection rather than just human perception. The current call for proposals explicitly incorporates these AI-enabled workflows, seeking a unified architecture that can serve both machine vision and premium 8K consumer experiences.