This standard defines the VC-2 video compression system through the stream syntax, entropy coding, coefficient unpacking process and picture decoding process. The decoder operations are defined by means of a mixture of pseudo-code and mathematical operations.

VC-2 is an intra frame video codec that uses wavelet transforms together with entropy coding that can be readily implemented in hardware or software at very high bit rates. Additional standards and recommended practices may define specific constraints on the encoding for particular applications.