Video Compression — To reduce the bandwidth requirements, video applications transmit compressed video. This encoding is commonly referred as source coding or simply video compression, and is performed by the codec in an application. The higher the compression ratio, the more computational power required but the lower the bandwidth requirement. Current video coding standards, H.264 and VP8 both claim to provide efficient compression and low bit rates. In the study conducted by the authors in [4], H.264 shows lower bandwidth usage and better video quality than VP8. High-efficiency video coding (sometimes referred to as H.265) is on its way to standardization and gives up to 40–50 percent improvement in bit rates.