The document discusses the next-generation video codec H.265 (HEVC), highlighting its ability to produce high-quality 4K video while significantly reducing file sizes compared to H.264. Early tests show that H.265 can achieve close to 50% bandwidth savings at certain settings, and its performance is improving with support for parallel computing. Although current support is limited and it requires more computational power, H.265 is poised to replace H.264 as the dominant codec for advanced video applications.