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← Encoding & Software
EncodingIndustry TrendMay 17, 2026

Compression still underpins streaming, video calls, and cloud storage

John E.

This article discusses the fundamental role of data compression in modern technology, particularly highlighting its importance for streaming video, internet functionality, and data storage. It explains the evolution from lossless to lossy compression, detailing various algorithms and their significant impact on reducing bandwidth and storage requirements for high-resolution content like 4K video. The article also touches on the increasing integration of AI and machine learning in developing future compression technologies.

Key Takeaways

  • Lossless compression methods like Huffman coding and Lempel-Ziv still power ZIP files and PNG images.
  • Lossy compression in MPEG, JPEG, and MP3 removes data humans are unlikely to notice to cut bandwidth.
  • Modern codecs named in the post include H.264, HEVC, AV1, and AAC.
  • A raw uncompressed 4K video stream may exceed 12 Gbps; compression can reduce that to under 20 Mbps.
  • The post says AI and machine learning are increasingly being used in neural codecs and may support partially generative compression in future codecs.

Why It Matters

For streaming, the immediate point is simple: compression is what makes large-scale video delivery, storage, and transmission economically feasible. The post ties that directly to global video streaming, IPTV, satellite TV, and video conferencing, and says modern compression also helps with AI dataset storage and transport. The competitive angle is less about a single company than the codec stack itself: H.264, HEVC, AV1, and AAC remain central, while AI-based neural codecs point to a different approach to representing media. Watch for future codec work that explicitly uses neural or partially generative methods rather than classic pixel- or sample-based encoding.


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