The Future of H.264

The recent public furor over Apple's lack of Flash support for the iPad is only one example of the complexities and far-reaching implications of video format selection, especially when reaching the widest possible audience is a requirement.

With the underlying Apple/Adobe disputes highlighting the debate between open source and proprietary systems advocates, the announcement that H.264 will be royalty-free until late 2016 is seemingly reassuring.

After all, one of the big appeals of open source solutions is that "they're free" — but if a proprietary system is also available for free, that distinct competitive advantage fades — a situation which the backers of H.264, MPEG-LA, seem to hope will help level the playing field against competitive formats. While its offer of limited time, no-royalty licensing may provide a means of accelerating the spread of the technology, not all tech observers see the move as a good thing for designers and developers.

According to Webmonkey's Scott Gilbertson, once the royalties take effect in 2016, "MPEG-LA could charge you whatever it wants — even an Austin Powers-style one million dollars per second of video."

"MPEG-LA's latest move seems ripped straight from a crack dealer's marketing guide — 'Here kid, the first hit's free,'" wrote Gilbertson. "Then, once the web is even more heavily invested in H.264 than it is now, MPEG-LA can set its royalty fees at whatever rate it wants, sit back and reap the profits."

The situation is fueled by lack of agreement amongst the major players, including browser makers, as to a standardized means of video display. While Flash is popular and able to decode H.264, it is facing a challenge from HTML5 as well as other technologies and its widespread longevity is by no means assured.

The issue of licensing fees for the H.264 software decoder is also reportedly one of the stumbling blocks to the format's adoption by Mozilla and Opera, among many others, as even an application such as a Firefox add-on that supports H.264 reportedly requires payment of licensing fees of $50,000, in addition to royalties.

While royalties and licensing fees are not the only issues to consider when choosing a video format — and indeed, other formats may come and go before the end of 2016 — your long term approach to delivery mechanism stability begins with the companies you choose to do business with as much as with their technologies — and that includes the terms under which you'll be required to play the game.

Related:  

Copyright © 2025 Adnet Media. All Rights Reserved. XBIZ is a trademark of Adnet Media.
Reproduction in whole or in part in any form or medium without express written permission is prohibited.

More Articles

opinion

Building Seamless Checkout Flows for High-Risk Merchants

For high-risk merchants such as adult businesses, crypto payments are no longer just a backup plan — they’re fast becoming a first choice. More and more businesses are embracing Bitcoin and other digital currencies for consumer transactions.

Jonathan Corona ·
opinion

What the New SCOTUS Ruling Means for AV Laws and Free Speech

On June 27, 2025, the United States Supreme Court handed down its landmark decision in Free Speech Coalition v. Paxton, upholding Texas’ age verification law in the face of a constitutional challenge and setting a new precedent that bolsters similar laws around the country.

Lawrence G. Walters ·
opinion

What You Need to Know Before Relocating Your Adult Business Abroad

Over the last several months, a noticeable trend has emerged: several of our U.S.-based merchants have decided to “pick up shop” and relocate to European countries. On the surface, this sounds idyllic. I imagine some of my favorite clients sipping coffee or wine at sidewalk cafés, embracing a slower pace of life.

Cathy Beardsley ·
profile

WIA Profile: Salima

When Salima first entered the adult space in her mid-20s, becoming a power player wasn’t even on her radar. She was simply looking to learn. Over the years, however, her instinct for strategy, trust in her teams and commitment to creator-first innovation led her from the trade show floor to the executive suite.

Women in Adult ·
opinion

How the Interstate Obscenity Definition Act Could Impact Adult Businesses

Congress is considering a bill that would change the well-settled definition of obscenity and create extensive new risks for the adult industry. The Interstate Obscenity Definition Act, introduced by Sen. Mike Lee, makes a mockery of the First Amendment and should be roundly rejected.

Lawrence G. Walters ·
opinion

What US Sites Need to Know About UK's Online Safety Act

In a high-risk space like the adult industry, overlooking or ignoring ever-changing rules and regulations can cost you dearly. In the United Kingdom, significant change has now arrived in the form of the Online Safety Act — and failure to comply with its requirements could cost merchants millions of dollars in fines.

Cathy Beardsley ·
opinion

Understanding the MATCH List and How to Avoid Getting Blacklisted

Business is booming, sales are steady and your customer base is growing. Everything seems to be running smoothly — until suddenly, Stripe pulls the plug. With one cold, automated email, your payment processing is shut down. No warning, no explanation.

Jonathan Corona ·
profile

WIA Profile: Leah Koons

If you’ve been to an industry event lately, odds are you’ve heard Leah Koons even before you’ve seen her. As Fansly’s director of marketing, Koons helps steer one of the fastest-growing creator platforms on the web.

Women in Adult ·
opinion

What France's New Law Means for Age Verification Worldwide

When France implemented its Security and Regulation of the Digital Space (SREN) law on April 11, it marked a pivotal moment in the ongoing global debate surrounding online safety and access to adult content.

Corey D. Silverstein ·
opinion

From Tariffs to Trends: Staying Resilient in a Shaky Online Adult Market

Whenever I check in with clients these days, I encounter the same concerns. For many, business has not quite bounced back after the typical post-holiday-season slowdown. Instead, consumers have been holding back due to the economic uncertainty around the Trump administration’s new tariffs and their impact on prices.

Cathy Beardsley ·
Show More