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ITU has produced the famous H.264 video codec. Is work progressing on a follow-up?

The work on H.265 is currently in a conceptual/exploration phase. The fundamental issue is the technical challenge of achieving a substantial improvement relative to H.264. It is also possible that we could standardize further extensions/variations of H.264, which may impact the potential for an H.265.

We may expect to potentially complete H.265 around 2012. However, the fundamental issue is that we must have a technical design that would merit the creation of such a standard. So it could hypothetically happen either sooner or later than that, depending on when suitable technology becomes available and sufficiently mature for standardization.