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H.264/AVC, the result of the collaboration between the ISO/IEC Moving Picture Experts Group and the ITU-T Video Coding Experts Group, is the latest standard for video coding. The goals of this standardization effort were enhanced compression efficiency, network friendly video representation for interactive (video telephony) and non-interactive applications (broadcast, streaming, storage, video on demand). H.264/AVC provides gains in compression efficiency of up to 50% over a wide range of bit rates and video resolutions compared to previous standards. Compared to previous standards, the decoder complexity is about four times that of MPEG-2 and two times that of MPEG-4 Visual Simple Profile. This paper provides an overview of the new tools, features and complexity of H.264/AVC.