The audio/video codec package Nero Digital has been significantly tuned for higher compression efficiency as Ahead software is about implement AVC/H264 video coding and Parametric Audio Coding to the package. This should provide significant improvements in quality when using low bitrate streams.
Nero Digital Video will also be significantly enhanced with the addition of AVC/H264. In recent proven tests by the MPEG Organisation, MPEG-4 Advanced Video Coding significantly outperformed the coding efficiency of previous standards including MPEG-2 and MPEG-4 Simple and Advanced Profile. Achieving bit rates of up to 4 times greater in terms of equivalent perceptual video quality is seen as a major step towards AVC becoming the next generation video standard.Source: Ahead Software
Parametric Audio Coding contains a highly efficient tool to code the stereo image enabling Parametric Stereo AAC to be combined in a backwards compatible fashion with High Efficiency AAC for usage in the low bit-rate range. This can offer an increase of up to 33% in coding gain over HE-AAC permitting very high quality audio compression at the lowest bit rates.