720696PMCT - An advancement in Video Compression TechnologyClosedGRD Development of PrototypeInnovate UKGlobal online video consumption accounts for >66% of internet protocol (IP) traffic. Between 2011 & 2013 avg. online video viewing grew by 6mins/person/day whilst traditional broadcast TV viewing fell by 7mins/person/day, demonstrating a major shift in how video is consumed. Patterns also show a trend towards viewing on mobile devices - Ericsson predict by 2019 IP traffic from mobile devices will far exceed that from wired devices & video consumption will account for >50% of mobile traffic. Exponential growth in mobile video consumption is one of the greatest challenges facing the global telecoms industry, with an immediate need to identify new ways of handling exploding IP traffic without incurring unsustainable infrastructure costs/risking network failures. This growth also represents a substantial business opportunity with research indicating that mobile operators globally can benefit from a net gain of $28.7bn over the next 5 years via deployment of better mobile video & data optimisation across networks. In order to allow this increased volume of video data to be delivered using existing network infrastructure, significant improvements are required to the efficiency with which video content can be digitally encoded for transmission. Existing state-of-the-art encoding methods are unable to operate at optimal efficiency due to their reliance on block-based compression algorithms which are not capable of fully benefiting from all of the redundant image info. that exists within a frame - resulting in a trade-off between video resolution, compressed file size & image quality. Magic Pony Technology Limited seek to address this need for improved video encoding technology, by advancing a novel predictive multi-scale video compression technology (PMCT) from its current unoptimised PoC implementation to beta prototype stage. PMCT will deliver significantly better encoding efficiency than is currently achievable using existing codecs without impacting on image quality.