eyeIO announced a new video encoding technology that reduces bandwidth usage and a deal with Netflix. GigaOM summed it up nicely:
EyeIO has been operating stealthily since the end of 2010, and was able to win Netflix as a customer last summer. Netflix hasn’t said where and in which capacity it is exactly using the technology it has been licensing from eyeIO, but the company’s VP of Product Development Greg Peters said in a press release that eyeIO is “an important part of the technology (Netflix uses) to improve video quality and overcome bandwidth challenges presented by Internet infrastructure.”
Standard-definition Netflix streams can consume up to 2.2 Mbps of bandwidth. Netflix’s 720p HD videos come in at roughly 3.8 Mbps, and 1080p videos go up to 4.8 Mbps. EyeIO CEO Rodolfo Vargas told me during a phone conversation Tuesday that his company’s encoding technology can achieve better-looking results that most established encoders with 20 percent bandwidth savings, and that eyeIO can still deliver similar quality to other encoders with up to 50 percent bandwidth savings. Content in 720p could be streamed using 1.8 Mbps, he explained. The company does this by optimizing the encoding process, which means that the results are regular, albeit smaller H.264 files that can be played by end users without any need for additional plug-ins.
Awesome news, although I don't have to worry with data caps. :)
Posted by: Jasmin | February 01, 2012 at 11:42 AM
It's not only about data caps: it's about being able to stream (apparently) a 720p stream to someone on a relatively slow DSL connection.
Not to mention resources around servers/bandwidth/network congestion.
Posted by: Evil Monkey | February 01, 2012 at 12:37 PM
As I keep saying, one of the advantages of streaming over other delivery technologies is they are much less locked into current compression techniques.
Posted by: jheartney | February 01, 2012 at 01:36 PM
They say "similar quality to other encoders". I have never streamed a 1080P but on numerous occasions NF's 720P streams are bit starved. For instance Star Gate Universe. Lots of low light shoots inside the ship. You will see the backgrounds turn into chunks of black blobs. All detail is lost.
Posted by: John Tierney | February 01, 2012 at 04:10 PM
Wait, when will we see this?
Posted by: Crow550 | February 01, 2012 at 10:46 PM
This would be a good thing for both end users and ISPs. Since a lot of net congestion is due to streaming media (especially from Netflix), reduction in bandwidth consumption would help those being starved of bandwidth due to local saturation as well as make more bandwidth available from Netflix during peak viewing hours. ISPs will love it as it would save them on operating costs. Win-Win for all.
Posted by: James C | February 01, 2012 at 11:15 PM
I forgot to add that if this also means no longer needing the Silverlight plugin, I eagerly anticipate it's implementation.
Posted by: James C | February 01, 2012 at 11:17 PM
That is great information.It's really great post.Thanks for the awesome post.
Posted by: Toshiba Laptop price List | February 02, 2012 at 04:40 AM
I'm still waiting for a good quality HD streaming option. The average Superbit DVD is 6 Mbps. Blu-ray audio streams are often more than what they're talking about for the entire stream here. I don't think netflix should even call their streams HD, maybe just "better quality" or something on those lines. In comparison, Blu-ray generally has data rates of 20-30 Mbps, and sometimes higher. I keep the blu-ray subscription because if you actually want quality, that's the ONLY format available.
Posted by: invenio | February 02, 2012 at 08:37 AM
The picture is just bad with streaming! I have a very fast network but the picture can't even come close to dvd or blu-ray. i have paid lots of money for my tv and want a good picture streaming is for older non hd tvs.
Posted by: Jv3030 | February 02, 2012 at 10:34 AM
JV you running wireless or wired to your Netflix device?
Try wired as maybe you have too much noise on the wifi connection and that the quality can't up stream to HD?
Posted by: Crow550 | February 02, 2012 at 03:35 PM
The HD quality is the same that you'd get on TV channels on cable / satellite.
Yes Blu-Ray is the best HD next to free Over-The-Air HD as it's less compressed than cable / satellite.
Posted by: Crow550 | February 02, 2012 at 03:37 PM
I watched VUDU and Amazon and the picture is real good. The streaming of netflix movies is bad and i will not pay for the crap picture they put out
Posted by: Jv3030 | February 02, 2012 at 03:59 PM
Compression always scares me. There is a theoretical limit on how much information can be transmitted with a given bandwidth. We are not at that limit, but the more they compress the more info we lose. And TV's are only getting bigger and bigger. Compress with care.
Posted by: Insanity Workout Reviews | February 02, 2012 at 08:10 PM
Compression, bandwidth, storage, etc will only improve over time. The biggest challenge netflix will face is content.
Posted by: FearNo1 | February 02, 2012 at 11:27 PM
Netflix HD streams are no worse than cable. Will Blu-Ray likely always be superior? Yes. Do the vast majority of people care? No. Personally, I believe the best HD streaming option is HDX via Vudu. I only use it though when I get a promotion code that makes it free or heavily reduced.
Posted by: Nate | February 03, 2012 at 09:35 PM
Agreed netflix will only face content as one challenge.
Posted by: Free MW3 | February 05, 2012 at 03:24 PM
I watched VUDU and Amazon and the picture is real good. The streaming of netflix movies is bad and i will not pay for the crap picture they put out
Posted by: Rachel McAdams | February 14, 2012 at 07:17 AM