Research Reports
Opportunities and Challenges for the AVS Standard in China
February 05, 2008 / China Research Team
10 Page, Topical Report
US$1,780 (Single User License)

Abstract

China's homegrown audio video coding and decoding standard, AVS (Audio Video coding Standard) has attracted much industry interest since its release. Due to the pervasiveness of digital multimedia applications, and the enormous potential of the Chinese digital TV, IPTV (Internet Protocol Television), and mobile phone TV markets, the industries are holding positive attitudes towards the future of AVS. In January 2006 the Standardization Administration of China approved the AVS as the national audio/video coding standard, and took effect in March 2006. With increasing adoption of AVS in China, the standard will begin to make an impact on the industry chain. The report analyzes current development of the AVS standard and services in China.
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China began drafting its own AVS standard in 2002 then went on to achieve a measure of success by building its own patent pool and commercializing the technology within five years.

The greatest advantage of AVS when compared to international standards such as MPEG is its lower royalties. MPEG standards not only charge hardware vendors for licensing but also levy membership dues on service providers based on programming and subscriber numbers. Beyond its pricing advantage however, there is still room for improvement in AVS technology and maturity. Currently, only a few chip and terminal device makers are involved with AVS, with a very limited number of products actually available at the end 2007. These factors have directly impacted service providers' willingness to adopt it on a large scale in their commercial networks. Apart from the immaturity of AVS technology and products, fixed-line telecoms such as China Telecom and China Netcom have already adopted the H.264 standard for their IPTV networks in many Chinese cities. Although IPTV is a key AVS application, these operators are not likely to replace their H.264 hardware with AVS infrastructure without good reason to protect their investments and ensure stability.

In the future, audio-video content will soon see widespread use in many applications so will offer AVS a golden opportunity to become the preferred codec. The authors and industry chain participants are expected to work together to improve their technology and put the products into large scale production in order to be competitive with other international standards.

Appendix

Scope

This research report looked at the Chinese AVS audio video standard and provides an overview of its development. It then analyzes its differences with existing international standards followed by an assessment of its influence and future prospects.

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