Video compression fundamentally involves condensing the data used to encode digital video content. It has a video compression codec that delivers the said benefits, without letting the video quality degrade. Video compression systems address impediments like high bandwidth costs and low-quality feeds for security and defense applications to monitor real-time video.

These systems can reduce bandwidth consumption by about 85-90 percent for live video streams. Some common applications of video compression include video surveillance, broadcasting, video-on-demand, and others.