by: Guido Meardi, V-Nova
OTT and Streaming TV providers constantly face the challenge of delivering high-quality video content while managing bandwidth and storage costs. AI-assisted video compression could reduce bandwidth or file sizes by 50% to 70% or more without compromising on video quality. AI video compression addresses critical issues such as buffering, latency, and poor video resolution, ensuring smoother streaming experiences for viewers. This technology is reshaping streaming operations, improving viewer satisfaction, and reducing operational costs.
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Why AI Video Compression Matters for OTT Providers
Streaming providers operate in a world where efficiency and quality must coexist. Viewers expect high-quality video, especially in live broadcasts, but operators face skyrocketing costs in bandwidth, infrastructure, and storage. AI video compression is transformative because it delivers generational improvements in efficiency. By intelligently leveraging codec tools, AI enhances compression performance, much like a skilled musician creating better results from the same instrument.
At V-Nova, we have gone further by designing compression formats, such as MPEG-5 LCEVC and SMPTE VC-6 that maximize AI’s potential. These formats provide greater flexibility and enable AI to deliver staggering quality and efficiency gains. For example, Brazil’s new TV 3.0 standard integrates AI-powered compression to deliver UHD HDR live broadcasts at just eight megabits, a milestone for next-generation TV systems.
AI Video Standards and Operational Benefits for Streaming Systems
The integration of AI video compression into standards such as MPEG-5 LCVC and SMPTE VC-6 is critical for OTT operators. These standards harness AI’s strengths in hierarchical processing and parallelism, ensuring both cost savings and improved quality. Operators adopting these new compression standards have reported up to 70% reductions in infrastructure costs and 40% lower bandwidth requirements, alongside revenue uplifts of 30–40% due to improved service reach and engagement.
Importantly, this technology is not just about cost reduction—it improves viewer experience. By reducing latency in live streaming and enabling more reliable adaptive bitrate ladders, AI compression ensures smoother playback and higher resolution. For monetizable use cases such as live sports, gaming, and cloud streaming, these improvements translate directly into stronger engagement, better customer retention, and higher revenue.
The Future of AI in Video and Immersive Streaming Experiences
Looking ahead, AI video compression is opening new frontiers in both media and advanced industries. At V-Nova, we are pioneering volumetric video formats that make true immersive VR entertainment possible. By compressing massive 3D data sets, we enable Hollywood-level visual quality in headsets like Apple Vision Pro and Meta Quest 3, allowing audiences to step inside cinematic worlds with six degrees of freedom.
The implications extend beyond entertainment. AI-friendly compression formats are accelerating training and inference for AI applications in autonomous driving, robotics, and defense, cutting processing times by up to tenfold. This proves that compression is not just a technical enabler, but a foundational “fuel” for the next generation of AI-driven applications.
For OTT and streaming operators, the message is clear: adopting AI video compression today means lower costs, better quality, and new revenue opportunities tomorrow. With short ROI cycles—often measured in weeks—the business case is one of the strongest in the media technology industry. The future of streaming will be defined by those who harness AI to make video smarter, faster, and more immersive.
About Guido Meardi
Guido Meardi is CEO and co-founder of V-Nova. He has over 20 years of leadership and development experience in video compression, media technology, and AI-driven video solutions.