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The quiet codec: Powering India's streaming boom
Voice and Data
|May 2025
India's OTT boom rides not just on great content, but on quiet innovation in compression—enabling reach, scale, and affordability for billions.
In the last decade, the digital entertainment landscape has undergone a seismic transformation. The emergence of Over-the-Top (OTT) platforms such as Netflix, Amazon Prime Video, Disney+ Hotstar, and local giants like JioCinema and MX Player has revolutionised how audiences consume content. But behind the glitz of premium series, blockbuster premieres, and binge-worthy originals lies a less glamorous, yet vital enabler: video compression technology.
Without efficient video compression standards, the OTT boom would have been unsustainable. From MPEG-2 in the early broadcast era to adaptive streaming powered by Artificial Intelligence (AI), compression technologies have drastically reduced the bandwidth needed to transmit high-quality video. In a country like India, characterised by mobile-first Internet usage, patchy connectivity, and price-sensitive consumers, compression is not just an engineering marvel; it is a business imperative.
IN BRIEF• Compression is the backbone of India's OTT growth, enabling high-quality video on lowbandwidth, low-cost networks across the country.
• From MPEG-2 to AV1 and VVC, codec evolution has drastically cut data usage while preserving video quality across diverse networks and devices.
Platforms using modern codecs like AV1 report longer view times, lower churn, and up to 40% savings in CDN and delivery costs.
• Al-driven compression customises bitrates in real time, improving quality and reducing costs during live and mobile-first streaming.
• Compression bridges India's digital dividedelivering content to rural users on prepaid plans, low-end phones, and patchy 3G networks.
EVOLUTION OF CODECS: FROM MPEG-2 TO AV1
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