The XVD Media Platform's compression system consists of two proprietary main parts: a video compression algorithm and an audio compression algorithm. Due to original ideas innovations gained during the more than 10 years of research and development, the efficient signal compression art transform methodology used throughout both algorithms ensures that XVD technology provides the best possible perceptual quality of compressed video/audio material at any given bitrate.

Video Codec (Video Compression Algorithm)
Similarly to other competitive video compression technologies, the XVD codec employs a motion compensation algorithm to reduce temporal redundancy of video signal and thus improve clarity. However, the XVD video encoder has several important proprietary features, each of those provide certain definitive improvements and advantages comparing to competing video codecs:

• A key-frame compression algorithm is based on proprietary Wavelet-based "HiBiCode" technology, which significantly improves the compression/quality trade-off, especially for high-motion scenes with frequent scene changes.
• A proprietary one-pass, two-pass and multi-pass bitrate control algorithm is used to optimally reallocate available bit budget between high-motion and low-motion scenes. Bit reallocation achieves perceptually constant video quality throughout entire video clips with varying content.

• Low computational complexity
• High frequency resolution is achieved using low-precision (16 bit) input data representation and low-precision (16 bit) fixed-point arithmetic
• Allows embedded and scalable functioning, thereby supports multiple sampling rates and multiple bitrates when different end-point users have different quality/bit- rate requirements