Ambarella CEO Admits H.265 and 4K Not Popular

By: John Honovich, Published on Sep 26, 2016

Ambarella is the main chip provider for high-end surveillance cameras driving higher resolution and new CODECs. While Ambarella has been pushing both H.265 and 4K, Ambarella's CEO now admits neither are seeing strong adoption in the West.

In this note, we examine the admission and what this means for the future of the video surveillance market.

********* ** *** **** chip ******** *** ****-*** surveillance ******* ******* ****** resolution *** *** ******. While********* *** **** ******* both *.*** *** **, *********'* *** *** admits ******* *** ****** strong ******** ** *** West.

** **** ****, ** examine *** ********* *** what **** ***** *** the ****** ** *** video ************ ******.

[***************]

H.265 *** *********

*********'* *******:

******* ***** **** [*.***] is *** ******* ** all *** ** *** royalty ******. *** ** China ** ***** ****** that **** ******** ***** well ****** ******* *** a *** ** ****** are ***** **** ** for ******* ******** ***********. So * ***** **** HEVC ********** ** ***** market ****.

**** ******** ******* / *.*** ******** fees ****, ******* **** *** fee *** $*.** ** Western ********* *** ****** and $*.** ** *****. 

** ******* *** **** issues ********* *.*** ******** *** stronger ********* ******* ********* *.***, *** ****** **** supporting / ******** *.*** streams ** *****, *** royalty ******. *** ******* rates *** *** **** significant *** *.***, *** even ** *.*** ********* were **********,  *.*** ***** delivers **** ***** *** more *********** **** **** smart *.***.

******, **** ************* *** not ******** *.*** *******, with *** ** *** * largest ************* (*********, ***** and ****) ******** ***** H.264 *** ** *.*** in *** ****. ***** a *** ****** ****** manufacturers *** ********* *.*** (most ******* *********, ******* and *******), **** ****** a ******** ******** **** limited *** *******.

4K *** *********

***** ***** *** ******** on *.***, *********'* *** said:

** ***** ** *** 4K, ***** ** **** what * ***** *** is **** *********. ** even **** ********* ** much ****** **** *********** full ** *****. ** do *** **** *** trend *** *** ************ IP ******** ****** ** to *** ****** *****, because *** **** ** get **** ********** ** you *** ** [*************] and *** ********** ********** matters *** **** *******. So ** ***** ****** a ******** ****** ******* to ****** ***** ** start ****** **** ********* become **** *******. * think ** ** **** trend. ** ** *****'* seen * ** ***** the ********** ***, *** I ** ******* **** megapixel **** **** **** could ** * ********** part.

** ****** **** *** being *** **** ****** than **, **** *** more ********. *** ****** behind **** ** **** 4MP ******* **** ** cost only ******** **** **** 1080p **** ***** ** ******* are ********* *** **** expensive. ********, **** ********* do *** ******* **** from *** ******** ** resolution **** *** ** 4K, ********** ***** ** limitations ** *** *** low *****.

*** ***/*** ** **** two ** *** **** hyped ******** ************, *.*** and **, *** ****** to ****** * ***** for * *** *****.

Ambarella's **********

**** ** *** ***** for *********, ** ********* ******* on ******* *** ******* edge ** **********, ****** that *** ***** **** adopt **. ** *** extent **** ***** ***** with ***** **********, **** computing ******* ********* ******, the **** ********* *** differentiate ******. ****** ****, Ambarella ** ********** ** GoPro's ******** (***** **** notable ********).

*******, ********* ***** ********** in *** ************ ******** market ****** ** ****** in *** **** ******:

** *** ************ ** ******** ******, ** *********** * ******* ** ******** ** *** ***** **** ** ****** **** ****, ************* **** ********* ******* ** *** ***** ******, *** ** ********** ************* ********.

** * ****-****-**** *****, overall ******** ** *** IP ******** ****** **** modestly **** ************ ******** experiencing * ***** ******* offset ** ****** ****** in *** **** ******** market.

Comments (9)

Interesting article, thanks.

A few comments

H.265 still delivers less value and more operational cost than smart H.264.

H.265 and smart codecs are not necessarily an either/or choice, though.

But in China we start seeing that HEVC standard being well widely adopted and a lot of people are using them in for Chinese internal consumption.

What's the reason that the huge domestic Chinese market is buying h.265 when smart h.264 is available, if not for licensing?

IPVM examined the HEVC / H.265 licenses fees here, finding that the fee was $0.80 in Western countries per camera and $0.40 in China.

I believe this is only HEVC Advance's fee, there is still the MPEG LAs patent pool to contend (or risk ignoring).

H.265 and smart codecs are not necessarily an either/or choice, though.

Sure, but once you go to H.265, you need to worry about VMS support and increased client decoding demands. With smart H.264, neither of these are concerns, as you know. Plus, since smart H.264 already massively decreases bandwidth consumption, the incremental savings for smart H.265 are not as meaningful.

What's the reason that the huge domestic Chinese market is buying h.265 when smart h.264 is available, if not for licensing?

Neither of us are experts in the local Chinese market but a few things insiders there have told us:

  • H.265 helps differentiate / block out smaller competitors, so the larger Chinese companies can push major buyers to require it, reducing competition from rivals who can not as quickly / easily obtain H.265
  • The greater prevalence of end-to-end solutions (i.e., cameras and recorders from same manufacturer) reduces the concern of VMSes not supporting it, which is still an issue in the Western open VMS market

> Plus, since smart H.264 already massively decreases bandwidth consumption, the incremental savings for smart H.265 are not as meaningful.

True, the bitrate drop from "dumb" to "smart" is big for low-complexity scenes for both Smart H.265 and H.264. H.265 has further I-frame reduction that will be handy but most likely not as big a drop as smart vs. dumb in general.

However, in more complex scenes (e.g. subway station, PTZ camera) Smart H.265 could bring meaningful bandwidth savings over Smart H.264. With increasing complexity the difference between Smart H.264 and Smart H.265 will likely move toward the inherent technology advantage of H.265 vs H.264 of ~40-50%. There is no magic here and one can expect the Chinese guys to show this in their promotion.

Most smarts are adaptions to more strongly filter out non-moving areas and IPVM showed that a big Smart H.264 saving comes from increasing the GOP size. This works well for mostly static scenes, but not for scenes with much motion, and many VMSes don't seem to like it and expect one I-frame every second or so.

Hey, that maybe in your next codec test round with Smart H.265 cameras you can test with a busy scene as well.

What if Smart H.265 can reduce another half bandwidth consumption, will it be competitive?

What if Smart H.265 can reduce another half bandwidth consumption, will it be competitive?

It can be competitive if enough VMSes adopt H.265 and the cost / complexity to decode is not too high. Unfortunately, the former is going to take some time to resolve and the latter will likely be an issue for a long time.

Is the Chinese adoption of HVEC possibly due to the lower adoption of western VMS products? This is just my interpretation of how I assume Chinese end users connect their IP cams, more to NVRs than VMS servers. So, if that is true, then it is easier to adopt HVEC, because the IP cam and NVR are the same brand. Where in the USA, it seems that we are more likely to use a VMS server.

Please correct me if my assumptions are wrong.

I think you're right about dvr/nvrs.

On the other hand, Milestone, Genetec and Aaxon are supporting h.265.

Still, its somewhat illusory because these are direct drivers written for particular models, so camera coverage is likely to be inconsistent and arbitrary for some time.

Now, if we had an even a draft ONVIF Profile specification for h.265, maybe things would be better, since a single driver could cover a multitude of cameras, but...

Related: Hello H.265, Goodbye ONVIF?

On the other hand, Milestone, Genetec and Aaxon are supporting h.265.

No.

Milestone will support it shortly, but not yet. And also only for most expensive versions.

Genetec supports it generally but there are still issues with specific cameras, e.g., we have the new Samsung H.265 cameras but they do not work currently with Genetec.

Finally, as you know, since ONVIF does not support H.265, you have to use RTSP (with the limitations of that) or do a proprietary integration which limits cameras supported and increases cost / barriers to support.

No.

Right, no Milestone til next quarter. Thanks.

Genetec supports it generally but there are still issues with specific cameras, e.g., we have the new Samsung H.265 cameras but they do not work currently with Genetec.

Finally, as you know, since ONVIF does not support H.265, you have to use RTSP (with the limitations of that) or do a proprietary integration which limits cameras supported and increases cost / barriers to support.

Yes, I do know, as I said:

Still, its somewhat illusory because these are direct drivers written for particular models, so camera coverage is likely to be inconsistent and arbitrary for some time.

Now, if we had an even a draft ONVIF Profile specification for h.265, maybe things would be better, since a single driver could cover a multitude of cameras, but...

Login to read this IPVM report.
Why do I need to log in?
IPVM conducts unique testing and research funded by member's payments enabling us to offer the most independent, accurate and in-depth information.

Related Reports on China

Hikvision Global News Reports Directory on Oct 17, 2019
Hikvision has received the most global news reporting of any video surveillance company, ever, ranging from the WSJ, the Financial Times, Reuters,...
US DoD Comments on Huawei, Hikvision, Dahua Cyber Security Concerns on Oct 16, 2019
A senior DoD official said the US is "concerned" with the cybersecurity of Hikvision, Dahua, and Huawei due to "CCP" (China Communist Party)...
Hikvision Dissolves North American Business Unit, Splits Canada and USA on Oct 15, 2019
Hikvision has dissolved its North American Business Unit, splitting up US and Canada operations as the PRC-government owned manufacturer faces...
Dahua Celebrates PRC 70th Wearing Communist Party Hammer and Sickle on Oct 11, 2019
Dahua celebrated the PRC's 70th anniversary with a video of various Dahua employees wearing China Communist Party hammer and sickle pins as shown...
Hikvision And Dahua Sanctioned For Human Rights Abuses on Oct 07, 2019
In a groundbreaking move that will have drastic consequences across the video surveillance market, Dahua and Hikvision have been sanctioned by the...
Crisis At China's Largest VMS Provider, Netposa, Now State-Controlled on Oct 07, 2019
NetPosa, which bills itself as the PRC's largest VMS provider, is in a crisis. The firm is pursuing huge unpaid bills from clients, and its...
US - China Review Commission Cites IPVM on Foreign Provider Threat on Oct 01, 2019
A bipartisan congressional commission cited IPVM twice in its analysis of how the PRC government protects its surveillance firms from foreign...
China Enforces Barriers Against Foreign AI and VSaaS Providers on Sep 30, 2019
While AI and VSaaS is the future of video surveillance, these are obstructed to foreign firms in China (the PRC), where authorities are tightening...
Consumer IP Camera Analytics Shootout - Arlo, Google / Nest, Amazon / Ring, Hikvision / Ezviz, Wyze Cam, Yi Home on Sep 26, 2019
AI analytics are hitting the mainstream in the consumer camera market, with entrants Wyze and Yi Home releasing free people detection on their...
Dahua And Hikvision Accept PRC Government Officials on Sep 26, 2019
Hikvision and Dahua are among the 100 companies accepting PRC government officials as part of a new initiative to boost manufacturing that has...

Most Recent Industry Reports

Alarm Veteran "Demands A Criminal Investigation" Of UL on Oct 18, 2019
The Interceptor's Project pressure against UL continues to rise. Following Keith Jentoft's allegation that "UL Has Blood On Their Hands", Jentoft...
Camect "Worlds Smartest Camera Hub" Tested on Oct 18, 2019
Camect is a Silicon Valley startup that claims the "Smartest AI Object Detection On The Market", detecting not only people and vehicles, but...
Hikvision Global News Reports Directory on Oct 17, 2019
Hikvision has received the most global news reporting of any video surveillance company, ever, ranging from the WSJ, the Financial Times, Reuters,...
Camera Calculator V3.1 Release Improves User Experience on Oct 17, 2019
IPVM has released a new version of our Camera Calculator, V3.1, with significant user experience improvements, a new development plan, and an...
Securing Access Control Installations Tutorial on Oct 17, 2019
The physical security of access control components is critical to ensuring that a facility is truly secure. Otherwise, the entire system can be...
Access Control Course Fall 2019 - Last Chance on Oct 17, 2019
Register Now - Fall 2019 Access Control Course. Thursday, October 17th is the last day to register. IPVM offers the most comprehensive access...
US DoD Comments on Huawei, Hikvision, Dahua Cyber Security Concerns on Oct 16, 2019
A senior DoD official said the US is "concerned" with the cybersecurity of Hikvision, Dahua, and Huawei due to "CCP" (China Communist Party)...
Pelco Sarix Pro3 Camera Tested on Oct 16, 2019
Pelco has released their Sarix Professional Series 3 cameras, claiming "more security detail in challenging scenes with excellent low light and...
IPVM Camera Calculator User Manual / Guide on Oct 16, 2019
Learn how to use the IPVM Camera Calculator. The guide below includes instructions, images, gifs, and videos demonstrating and explaining the...
Altronix Claims Tango 'Eliminates Electricians' on Oct 15, 2019
Power supply provider Altronix claims its new Tango power supply 'eliminates the need for an electrician, dedicated conduit and wire runs'. In...