HEVC Advance Lowers Royalty Rates

By Milos Pavlovic
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HEVC Advance CEO, Peter Moller, said, “We are…confident that the revised pricing structure and rates balance the needs of both HEVC users and patent owners”.HEVC Advance – one of the licensing bodies for the HEVC codec – has announced changes to its royalty rate structure, after gathering feedback. Royalties from public and not-for-profit TV broadcasting; content distribution that is free to end-users; and internet content distribution will be waived. In addition, the commercial content distribution structure has been simplified, says the group, and pricing has been reduced. Device royalty rates have been lowered and royalty caps for devices and content distributors have been introduced.

Analyst Comment

This news comes following negative feedback, and the beginning of industry fragmentation, surrounding the HEVC codec, which is being licensed by two separate bodies. For more, see our previous coverage: HEVC Advance Accepts Patents. (TA)

This development may well owe quite a lot to the threat from internet companies in the Alliance for Open Media. (Leading Companies Collaborate to Avoid Codec Fees) (BR)