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Context-based adaptive binary arithmetic coding (CABAC) as a normative part of the new ITU-T/ISO/IEC standard H.264/AVC for video compression is presented. By combining an adaptive binary arithmetic coding technique with context modeling, a high degree of adaptation and redundancy reduction is achieved. The CABAC framework also includes a novel low-complexity method for binary arithmetic coding and probability estimation that is well suited for efficient hardware and software implementations. CABAC significantly outperforms the baseline entropy coding method of H.264/AVC for the typical area of envisaged target applications. For a set of test sequences representing typical material used in broadcast applications and for a range of acceptable video quality of about 30 to 38 dB, average bit-rate savings of 9%-14% are achieved.