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Sony Handycam AVCHD Technology Handbook page 7

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A new generation of video compression.
continued
MPEG-2
Time
H.264
While MPEG-2 (top) can refer only to one frame before and one after, H.264 refers to five
frames in total (three before and two after), for greater efficiency.
MPEG-2 encoders work by referring to one frame before the current frame and one frame
after. H.264 encoding is far more powerful, referring to 5 frames at a time. This is an
effective way to reduce the recorded bitrate without reducing the picture quality.
Just as MPEG-2 saw worldwide acceptance in a dazzling range of applications, we expect
similar, widespread adoption of the MPEG-4 AVC / H.264 standard. This has already been
standardized by the International Telecommunications Union, Telecommunications
Bureau (ITU-T) and the International Organization for Standardization (ISO). H.264 already
plays a role in a broad range of applications from the PlayStation Portable (PSP™) system
and Digital Mobile Broadcasting in Japan and Korea all the way to high definition coding
for the Blu-ray Disc™ format.

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