"Set for a year-end release, AV2 is not only an upgrade to the widely adopted AV1 but also a foundational piece of AOMedia’s future tech stack.
AV2, a generation leap in open video coding and the answer to the world’s growing streaming demands, delivers significantly better compression performance than AV1. AV2 provides enhanced support for AR/VR applications, split-screen delivery of multiple programs, improved handling of screen content, and an ability to operate over a wider visual quality range. AV2 marks a milestone on the path to an open, innovative future of media experiences."
Then it’s arguably delegating some of the cost to the final user, large streaming companies spending a bit less on IXP contracts while viewers have to have newer hardware that might need a bit more energy too to run.
On the upside, the end user needs to use up less data for the same content. This is particularly interesting under 4G/5G and restrictive data plans, or when accessing places / servers with weak connection. It helps avoid having to wait for the “buffering” of the video content mid-playback.
But yes, I agree each iteration has diminishing returns, with a higher bump in requirements. I feel that’s a pattern we see often.