With IP becoming the focus for next-generation cable STBs, how will we optimize bandwidth? The article below caught my attention about the technology of Eyeio (used by Netflix) vs. the advancement of H.265 (HEVC). The first hurdle in using H.265 is encoding existing libraries into this format so you can take advantage of the new footprint. The article contends that the technology form EyeIO already gives you both the quality of H.265 and the bandwidth savings, however there is no discussion of the business model. For H.265, there is the additional hurdle of codecs for decoding H.265 on target devices, however, if you see the plethora of announcements on the H.265 Wiki page, H.265 encoders and decoders are quickly beginning to proliferate.
Ironically the attached press release tells about the same story, but at the bottom of the press release in "About EyeiIO" they suggest breakthrough technology in both H.264 and H.265, which might suggest even greater bandwidth optimization in the future using H.265 and EyeIO technology together.
...and let's not forget about Google and it's desire to make VP8 the defacto (open source) video codec standard. There's a race going on to optimize bandwidth to serve the veracious appetite for video consumption. Many good algorithms are rising to the challenge, it will be interesting to see what rises to the top.
http://www.nscreenmedia.com/1/post/2013/01/why-wait-for-h265-when-you-can-have-the-benefits-now-thx-certified.html
For more technical insight into the development of H.265 see:
http://www.h265.net/