YouTube is preparing to introduce the next generation of video streaming technology in early 2027, with the new AV2 codec promising improved picture quality while using significantly less bandwidth.

Developed by the Alliance for Open Media, which includes technology giants Google, Apple, Amazon, Intel, Netflix and Samsung, AV2 is designed to replace the existing AV1 standard and provide an alternative to royalty-based video codecs such as HEVC.

Released in June 2026, AV2 is claimed to deliver approximately 30 per cent better compression efficiency than AV1, allowing streaming platforms to deliver higher-quality video without increasing data consumption.

Alternatively, streaming services could maintain existing picture quality while reducing the bandwidth required, potentially improving playback performance for viewers with slower internet connections.

Google has already demonstrated real-time AV2 decoding, and the Alliance for Open Media has confirmed that several major streaming platforms are exploring the technology.

YouTube is expected to be among the first to introduce AV2, with an initial rollout targeting web browsers during the first quarter of 2027.

The service plans to use software decoding initially, allowing compatible computers to play AV2 video without requiring dedicated hardware support.

According to YouTube Engineering Director Des Keane, more than 90 per cent of YouTube’s catalogue, measured by viewing time, was already available in AV1 as of March 19, 2026.

The company believes AV2 could deliver further improvements in picture quality while enabling new features involving multiple simultaneous video streams.

Netflix and Amazon Prime Video are also investigating the technology, although neither company has announced when AV2 streaming might become available.

Meta has confirmed plans to support the codec across its platforms, building on its existing investment in AV1, which has become a major video delivery format for Facebook and Instagram.

Intel has also reaffirmed its commitment to AV2 as the technology moves from the specification stage towards commercial implementation.

However, widespread adoption could still be several years away.

While software decoding will allow AV2 to reach web browsers relatively quickly, broader support will depend on manufacturers incorporating dedicated decoding hardware into televisions, smartphones, computers and streaming devices.

No televisions currently offer hardware-based AV2 decoding, and many media players are still catching up with AV1 support.

The codec is also unlikely to reach physical media anytime soon. Neither AV1 nor AV2 is currently supported by the UHD Blu-ray specification, meaning adoption would require changes to the standard and compatible new hardware.

For consumers, the biggest immediate benefit could be improved streaming efficiency, particularly as services continue expanding their 4K HDR offerings.

If AV2 delivers on its promised compression improvements, it could eventually help streaming platforms offer sharper pictures, smoother playback and reduced data consumption without requiring faster internet connections.