Netflix could get a massive streaming boost soon, thanks to key tech breakthrough

You might think that you're getting the best quality from your Netflix stream, but let me tell you – you're not. There are a number of reasons for that, and they all come down to data.

Picture performance depends on much data needs to be transmitted and the compression needed to make that happen. But there's been a breakthrough, which could change everything.

When you stream content, it has to be compressed at the source and decompressed by the device that's receiving it. That allows for less data to be transmitted to ensure a good user experience, but that results in losses in the original content. The better the codec doing the compression, the less impact those losses make on the version you see.

The Alliance for Open Media (AOMedia) has just announced the release of its new codec, called AV2. It supplants AV1, which might be familiar because it's used by streaming services, including YouTube, Netflix, Prime Video and social video services like Instagram Reels.

While AV1 was lauded for being 30% more efficient than older formats (like VP9 and HEVC), AOMedia says that AV2 offers "significantly better compression performance than AV1." And that's worth getting excited about.

"AV2 provides enhanced support for AR/VR applications, split-screen delivery of multiple programs, improved handling of screen content, and an ability to operate over a wider visual quality range," says AOMedia in the announcement.

What difference could this make to Netflix?

There's a lot to unpack here, so let's take a minute to be excited about a new codec.

While AOMedia hasn't said a lot, the first thing to focus on is "wider visual quality range". If you can take the original source and compress and decompress more efficiently, you can effectively preserve more detail and get a better viewing experience once it arrives on your TV at home.

This isn't about resolution per se, it's about enabling higher data rates, so at the same resolution, there's more information. That could be enhanced shadow detail, a reduction in banding or increased HDR information – all the sorts of things that Ultra HD Blu-rays currently deliver, but streaming services struggle to match.

Equally, AV2 could be used to lower the demands of 8K streaming, giving a boost to the next step in the format wars.

Great efficiency isn't only about providing more, it could mean smoother streams for those on weaker connections, too. If you can deliver the same quality of video with lower data demands, then you have another benefit – the potential for less buffering or a faster transition to higher resolution streams.

As you might know, streaming services use adaptive bitrate delivery. This starts the programme quickly at a lower quality and then ramps it up if there's the bandwidth to do so. That means that sometimes you're watching a lower quality than you expected – AV2's greater efficiency could mean you receive a higher quality faster.

And there's even more that seems to be on the table for AV2. The mention of AR/VR suggests that AV2 could find its way into headsets in development. That could include Apple Vision Pro or Samsung's anticipated Project Moohan headset, as both companies are part of AOMedia's steering committee.

Exactly where AV2 will end up remains to be seen – as well as whether any specific hardware will be needed to support it – but AOMedia says that 88% of its members plan to adopt AV2 within the next two years.

AV2 will be released by the end of 2025 and we could see it used by the likes of Netflix as early as next year.