The later and common standard for video compression is the H.264 codec, and the latest standard for video compression is H.265 codec. The H.264 codec was developed to reduce demands for video storage and bandwidth. H.264 compression uses up to 50 percent less bandwidth than MPEG-4 to transmit images of the same quality. With substantially lower bit rates, H.264 also uses significantly less storage to store video compared to previous standards.
In a nut shell, DVRs with H.264 allow you to transmit video at faster frame rates and increase your archive duration. As we all know, H.264 + AAC codec stream become golden combination of network video and audio stream. H.264 + AAC stream will be generally applicable to variety media player equipment and software in current and future. Three different types of video streams to give you more flexibility including MJPEG, MPEG4 and also bandwidth saving H.264. Use whichever works best for you in a given situation.