The action movies are going to be shown with H-264 and H-265 quality - not anything less.
(1) Netflix and Hulu can afford to pay the license fees.
(2) That technology is going to be better than the royalty free technology no matter who says anything differently.
The consortium of Apple, Intel, Microsoft, et al can encourage hardware vendors to add whatever embedded graphics processing technology into new devices to make new H-265 compatible devices work better than 1 year old devices. The strategy that underlies the H-265 quality is one that encourages everyone to upgrade their technology tools as soon as their is a better quality video standard available. However, how many people are going to retire their iphone 5 for an iphone 6 just for the improvement in speed and quality of graphics from H-264 to H-265 standards?
Right now, Destiny will pursue the second tier market. Small publishers, amateur videographers and educational video companies because they want lower costs and simplicity over extreme quality at higher costs and complexity.
Destiny may develop a version of Clipstream G2 that uses H-265 at some point to reach the high-end customers, but that would be down the road a bit unless Netflix wants to pay the royalty bill through a licensing deal.
Once Destiny commits to running H-265, they will be on the hook for those royalties every year for a long while.
If Destiny can achieve near H-264 quality with their royalty free solution, then they have a killer application.
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