We show that for high bit rates, a video coding algorithm using a suitable combination of the QM coder and on other methods first published over 20 years ago can deliver video quality rivaling that of H.264 at lower complexity. This has implications both technically, since encoders built using these methods can be more power efficient, and commercially, given the complex licensing and intellectual property issues that accompany newer coding methods such as H.264 and MPEG-4. The methods described in this paper are the basis for the recent decision of the MPEG standards group to begin work on what is referred to as the “Type-1 Video Coding” standard, which, in addition to aiming for high coding efficiency, is intended to minimize royalty issues.
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