AV2 Codec: The Next-Gen Open Video Codec You Should Know About

Technology is rapidly expanding. Streaming resolutions are going up to 4k and beyond, and more and more newer technologies are coming up, like AR/VR. While these technologies aim to enhance the end-user experience, they have their own set of challenges. Starting with bandwidth management, device compatibility, to intense infrastructure pressure, newer tech needs a new codec, and the AV2 Codec, scheduled to be launched by this year end looks promising.

The AV2 Codec is the next line of exceptionally capable video codec expected to offer superior video quality, enhanced compression algorithms, and overall superior video quality at lower bitrates than its predecessor, the AV1.

AO Media or Alliance for Open Media has announced on Sept 15, 2025, to the world that they are working on defining and deploying the next generation of video codec by launching the next evolution in open video coding, the AV2. Being called the generational leap in technology, AV2 may revolutionize the OTT streaming industry by providing much better support for formats such as VR that are bandwidth-heavy.

For streaming platforms and enterprises managing large video libraries, that matters: bitrates vs quality, device support, codec agility, and infrastructure cost all hang on codec performance. So for a streaming platform, you could deliver the same quality at a lower bandwidth (cost savings on CDN/transit/storage) or deliver higher quality (resolution, frame rate, immersive formats) at the same bandwidth.

Additionally, as per AO Media in its survey conducted on its 10th anniversary, suggests strong support for AV2 acceptance, with over 52% people are of the opinion that they might upgrade it within 12 months upon finalization, and a whopping 83% expecting it to implement it within the next two years.

Based on the latest information available, here are a few notable differences between AV1 and AV2 codecs.