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The use of digital techniques in video created digital video. It could not initially compete with analog video, due to early digital uncompressed video requiring impractically high bitrates. Practical digital video was made possible with discrete cosine transform (DCT) coding,[4]lossy compression process developed in the early 1970s.[5][6][7] DCT coding was adapted into motion-compensated DCT video compression in the late 1980s, starting with H.261,[4] the first practical digital video coding standard.[8]

Digital video was later capable of higher quality and, eventually, much lower cost than earlier analog technology. After the invention of the DVD in 1997, and later the Blu-ray Disc in 2006, sales of videotape and recording equipment plummeted. Advances in computer technology allows even inexpensive personal computers and smartphones to capture, store, edit and transmit digital video, further reducing the cost of video production, allowing program-makers and broadcasters to move to tapeless production. The advent of digital broadcasting and the subsequent digital television transition is in the process of relegating analog video to the status of a legacy technology in most parts of the world. The development of high-resolution video cameras with improved dynamic range and color gamuts, along with the introduction of high-dynamic-range digital intermediate data formats with improved color depth, has caused digital video technology to converge with film technology. Since 2013, the usage of digital cameras in Hollywood has surpassed film's.[9]