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Since we're talking about VP8 I'd like to take this chance to briefly talk about some of the stuff coming in the future. H265 is being developed now, though it's still a long ways away. Basically at this point people are throwing lots of shit at the wall to see what sticks (and hope they get a patent in). It is interesting to see what kind of stuff we may have in the future. Almost none of it is really a big improvement like "duh we need to have that in our current stuff", it's mostly "do the same thing but use more CPU". The best source I know of at the moment is H265.net , but you can also find lots of stuff just by searching for video on citeseer. (addendum : FTP to Dresen April meeting downloads ). H265 is just another movec + residual coder, with block modes and quadtree-like partitions. I'll write another post about some ideas that are outside of this kind of scheme. Some quick notes on the kind of things we may see : Super-resolution mocomp. There are some semi-realtime super-resolution filters being developed these days. Super-resolution lets you take a series of frames and great an output that's higher fidelity than any one source. In particular given a few assumptions about the underlying source material, it can reconstruct a good guess of the higher resolution original signal before sampling to the pixel grid. This lets you do finer subpel mocomp. Imagine for example that you have some black and white text that is slowly translating. On any one given frame there will be lots of gray edges due to the antialiased pixel sampling. Even if you perfectly know the subpixel location of that text on the target frame, you have no single reference frame to mocomp from. Instead you create super-resolution reference frame of the original signal and subpel mocomp from that. Partitioned block transforms. One of the minor improvements in image coding lately, which is natural to move to video coding, is PBT with more flexible sizes. This means 8x16, 4x8, 4x32, whatever, lots of partition sizes, and having block transforms for that size of partitition. This lets the block transform match the data better. Which also leads us to - Directional transforms and trained transforms. Another big step is not always using an X & Y oriented orthogonal DCT. You can get a big win by doing directional transforms. In particular, you find the directions of edges and construct a transform that has its bases aligned along those edges. This greatly reduces ringing and improves energy compaction. The problem is how do you signal the direction or the transform data? One option is to code the direction as extra side information, but that is probably prohibitive overhead. A better option is to look at the local pixels (you already have decoded neighbors) and run edge detection on them and find the local edge directions and use that to make your transform bases. Even more extreme would be to do a fully custom transform construction from local pixels (and the same neighborhood in the last frame), either using competition (select from a set of of transforms based on which one would have done best on those areas) or training (build the KLT for those areas). Custom trained bases are especially useful for "weird" images like Barb. These techniques can also be used for ... Intra prediction. Like residual transforms, you want directional intra prediction that runs along the edges of your block, and ideally you don't want to send bits to flag that direction, rather figure it out from neighbors & previous frame (at least to condition your probabilities). Aside from finding direction, neighbors could be used to vote for or train fully custom intra predictors. One of the H265 proposals is basically GLICBAWLS applied to intra prediction - that is, train a local linear predictor by doing weighted LSQR on the neighborhood. There are some other equally insane intra prediction proposals - basically any texture synthesis or prediction paper over the last 10 years is fair game for insane H265 intra prediction proposals, so for example you have suggestions like Markov 2x2 block matching intra prediction which builds a context from the local pixel neighborhood and then predicts pixels that have been seen in similar contexts in the image so far. Unblocking filters ("loop filtering" huh?) are an obvious area for improvement. The biggest area for improvement is deciding when a block edge has been created by the codec and when it is in the source data. This can actually usually be figured out if the unblocking filter has access to not just the pixels, but how they were coded and what they were mocomped from. In particular, it can see whether the code stream was *trying* to send a smooth curve and just couldn't because of quantization, or whether the code stream intentionally didn't send a smooth curve (eg. it could have but chose not to). Subpel filters. There are a lot of proposal on improved sub-pixel filters. Obviously you can use more taps to get better (sharper) frequency response, and you can add 1/8 pel or finer. The more dramatic proposals are to go to non-separable filters, non-axis aligned filters (eg. oriented filters), and trained/adaptive filters, either with the filter coefficients transmitted per frame or again deduced from the previous frame. The issue is that what you have is just a pixel sampled aliased previous frame; in order to do sub-pel filtering you need to make some assumptions about the underlying image signal; eg. what is the energy in frequencies higher than the sampling limit? Different sub-pel filters correspond to different assumptions about the beyond-nyquist frequency content. As usual orienting filters along edges helps. Improved entropy coding. So far as I can tell there's nothing too interesting here. Current video coders (H264) use entropy coders from the 1980's (very similar to the Q-coder stuff in JPEG-ari), and the proposals are to bring the entropy coding into the 1990's, on the level of ECECOW or EZDCT.