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There has been lots of discussion about how onerous the content royalties proposed by HEVC Advance are for streaming distributors. In this article, I analyze the impact of those royalties on HEVC adoption and usage using two models, the M-Go model, for single movie rentals, and the Netflix model.
Surprisingly, when you consider the bandwidth savings that HEVC delivers, switching to HEVC makes a lot of economic sense for Netflix, even with the content royalty. For M-Go, however, the royalty likely makes HEVC a non-starter.
Click here to see my analysis.
