Comment by tverbeure

I don’t know the details of AV2, but going from h.265 to h.266, the number of angles for angular prediction doubled, they added a tool to predict chroma from luma, added the ability to do pixel block copies and a bunch of other techniques… And that’s just for intra predictions. They also added tons of new inter prediction techniques.

All of this requires a significant amount of extra logic gates/silicon area for hardware decoders, but the bit rate reduction is worth it.

For CPU decoders, the additional computational load is not so bad.

The real additional cost is for encoding because there’s more prediction tools to choose from for optimal compression. That’s why Google only does AV1 encoding for videos that are very popular: it doesn’t make sense to do it on videos that are seen by few.