H.264 streaming royalties just got a dramatic overhaul. Starting in 2026, Via Licensing replaced its flat $100,000 annual cap for large platforms with a tiered system. Tier 1 fees now hit $4.5 million yearly for OTT services, FAST platforms, social media giants, and cloud gaming providers with massive user bases. This 45x jump transforms what was once a trivial cost into a budgetary line item for companies like Netflix, Amazon, and Meta.

The change only affects *new* licensees post-2025, leaving existing license holders grandfathered in. Via quietly notified unlicensed companies in 2025 but avoided public announcements, leaving smaller players potentially unaware. Legal expert Jim Harlan clarifies that while many H.264 patents have expired, licensing obligations persist due to the codec's global dominance. Avoiding royalty exposure via outdated profiles or selective patents remains legally risky.

Via's structure splits fees by service type: subscriber counts for OTT, daily users for FAST, and active users for social/cloud gaming. A single entity must license each service separately, though enterprise caps for devices and streaming exist. Critics argue the lack of transparency around the shift—no press releases, just direct outreach—creates uncertainty for developers.

The move underscores H.264's enduring relevance despite newer codecs. With 90%+ of streaming traffic relying on AVC, Via maintains pricing power. For tech firms, the question isn't just cost but compliance: navigating a fragmented patent landscape while scaling globally. As Harlan notes, "Maturity changes economics, not law."