Netflix has just crossed a symbolic milestone: around 30% of all its global streaming is now served with AV1, the open video codec driven by the Alliance for Open Media (AOMedia).
Behind that percentage is more than just a technical update. It represents a fundamental shift in how series and movies are compressed, distributed, and viewed on millions of screens. And it comes just as the industry prepares for the next leap: AV2, the successor intended to further improve video compression efficiency.
From H.264 to the AV1 Ecosystem: A Decade of Silent Transition
For years, the de facto standard in streaming has been H.264/AVC, a mature and highly compatible codec, but increasingly limited in the face of 4K, HDR, high frame rates, and mass data consumption demands. HEVC/H.265 improved efficiency but carries a drawback: a fragmented licensing scheme with multiple patent pools.
In 2015, Netflix and other tech giants promoted AOMedia with a clear goal: develop a modern, efficient, and open codec. The result was AV1, released in 2018 as a standard designed to deliver significant compression gains over AVC and VP9, with a royalty-free licensing model.
Since then, Netflix has phased in AV1:
- 2020: first AV1 streams on Android, decoded via software using the dav1d library.
- 2021–2022: move to smart TVs and large-screen devices with hardware support, later also browsers.
- 2023–2025: massive expansion of catalog and device compatibility, including recent Apple chips with AV1 decoders.
Today, according to the company’s own data, AV1 is already the second most used codec on the platform and is “poised to become the first” in the coming years.
What Netflix (and the User) Gains with AV1
The advancement of AV1 is not just theoretical. Netflix has published figures showing a direct impact on the daily experience of its subscribers:
- Better image quality: AV1 sessions typically achieve 4.3 points higher VMAF than AVC and 0.9 points higher than HEVC, under equal conditions.
- Less data usage: AV1 streams use roughly one-third less bandwidth than AVC and HEVC.
- Fewer interruptions: this efficiency translates into up to 45% fewer buffering events.
This is complemented by the “premium” layer:
- In HDR, Netflix uses AV1 with HDR10+, enabling dynamic tone mapping tailored to each scene and TV’s capabilities. In viewing hours, 85% of the HDR catalog already includes AV1+HDR10+, and the company expects to reach nearly 100% soon.
- For content with cinematic grain, AV1 incorporates Film Grain Synthesis (FGS): instead of encoding film grain frame-by-frame, only parameters are sent, and grain is reconstructed on the device. Internal tests show this technique can reduce bitrate by around 60–66% on very grainy titles, preserving artistic intent.
Meanwhile, the company is testing AV1 for live streaming and cloud gaming, where every millisecond and megabit counts. Smaller frame sizes mean less latency and more stability when network conditions are poor.
Device Role: AV1 Is Now Nearly Ubiquitous in Televisions
The deployment of a new codec depends not only on the broadcaster but also on the receiver. And the numbers favor AV1.
Between 2021 and 2025, around 88% of large-screen devices (TVs, set-top boxes, streaming sticks) submitted for certification by Netflix included AV1 decoders, most capable of 4K at 60 fps. Since 2023, virtually all devices passing through this process are compatible.
This explains how AV1, in just a few years, has evolved from a technical curiosity to a core pillar of Netflix’s video infrastructure.
AV1, HEVC, H.264, AV2… How Do They Compare?
Broadly, the landscape of premium streaming codecs can be summarized as follows:
Table 1. Basic Codec Comparison for OTT Streaming
| Codec | Type/Licensing | Main Goal | Approximate Compression Gain vs H.264* | Current Streaming Status |
|---|---|---|---|---|
| H.264 / AVC | Royalty-based standard | Universal compatibility, HD | – | Still widespread, the historical base for Netflix and others. |
| HEVC / H.265 | Multiple patent pools | 4K, HDR, better efficiency than AVC | ≈ 40–50% depending on content and settings | Used in UHD and HDR, but licensing friction persists. |
| AV1 | Open codec driven by AOMedia | Maximum efficiency without royalties, Internet-focused | ≈ 30% or more over AVC in many workflows | Already the second most used codec on Netflix and the preferred choice for new devices. |
| AV2 | Next open codec from AOMedia | Greater efficiency, better support for AR/VR, multiview, and screen content | AOMedia indicates “significant” improvements (no public figures yet) | Expected spec by late 2025; actual adoption depends on hardware and compatible players. |
* Gains depend on content, configurations, and specific metrics, but figures align with industry estimates.
Netflix Today: Three Codecs in Play, One Rising
Although Netflix hasn’t abandoned H.264 or HEVC—necessary for older devices or specific scenarios—the current picture looks like this:
Table 2. Codec Usage and Effects in Netflix (Simplified View)
| Codec | Approximate Viewing Share | Relative Bandwidth Consumption | Perceived Quality (VMAF, relative) | Buffering Impact |
|---|---|---|---|---|
| AVC (H.264) | Still the most used, especially on legacy devices | 100% (reference) | Baseline | Baseline |
| HEVC (H.265) | Significant in 4K/HDR titles when AV1 isn’t supported | ~70–75% compared to H.264 | Better than AVC at same bitrate | Fewer buffering events than AVC on similar networks |
| AV1 | ~30% of total streaming, rapidly growing | ~66% (one-third less data than AVC/HEVC on average) | +4.3 points VMAF over AVC and +0.9 over HEVC | Up to 45% fewer buffering disruptions |
Based on Netflix’s latest technical blog and sector analyst summaries.
Hidden Cost: AV1 Is More Efficient… But Much More Expensive to Encode
The flip side is processing cost. Achieving these extra efficiencies requires much longer encoding times compared to H.264. Independent analyses mention factors ranging from 15 to 80 times slower, depending on configurations and tools used.
For a household user, this might not be justifiable. But for giants like Netflix, YouTube, or large cloud gaming platforms, the calculation is different: the additional CPU/GPU cost in their encoding farms is offset by:
- Less traffic on their own networks and ISP infrastructure.
- Fewer congestion peaks.
- Better quality and less support trouble.
With AV2, this tension will persist: the promise is even greater compression, but at the expense of increased complexity, which, in the early years, will only be accessible to those operating at the “top tier” of on-demand video.
What AV2 Will Bring… and Why Caution Is Needed
What we know about AV2 today is still partial, but AOMedia has already outlined several key directions:
- Greater compression efficiency, aiming to clearly surpass AV1.
- Improved support for AR/VR, screen and graphics content, and split-screen scenarios (ideal for multi-camera sports productions).
- Ability to operate across a wide quality range, from mobile to 8K large screens.
Practically, this suggests that while AV1 is solidifying as the “generalist” codec for open streaming, AV2 could become the preferred tool for more advanced experiences, such as live sports with multiple cameras, extended reality, or cloud gaming with multiple on-screen elements.
However, even once the specification is finalized by late 2025, AV2 will need to follow the same path as AV1:
- Hardware support (TV SoCs, mobile chips, consoles, GPUs…).
- Stable implementations in browsers and applications.
- Mature encoding tools that are energy-efficient and cost-effective.
Therefore, in the short to medium term, AV1 will remain the main driver of the next generation of online video.
Beyond Netflix: Industry-Wide Pressure and Momentum
What Netflix does rarely stays within its own borders. As one of the biggest internet traffic generators, pushing AV1—and openly expressing enthusiasm for AV2—sends a clear message to the rest of the industry:
- To device manufacturers: those who don’t implement AV1 and prepare AV2 risk exclusion from the premium catalogs of major platforms.
- To other streaming services: relying solely on AVC and some HEVC will become progressively less competitive in quality, bandwidth costs, and user experience.
- To network providers and ISPs: each percentage point increase in AV1 reduces strain on infrastructure—a key factor amid growing traffic.
Meanwhile, the viewer experiences the change silently: nothing needs to be adjusted in their account, nor will they have to pay more. Perhaps they will notice, with a bit of luck, that shows look better, use less data, and stutter less. In the codec war, that’s probably the most compelling argument of all.
Source: Redes Sociales News