In the recent past, Audio and Video codecs have attracted active research activity from academia and the industry; these activities are based on simple economics. Better compression means smaller storage, less bandwith, and these technical breakthroughs are enablers of new applications that will push the sales of new products. This paper will start by discussing the pitfalls of concentrating on the simple codec considerations without sufficient attention to the entire video acquistion chain. This is an area that is less discussed in academia because it has less to do with exact equations as opposed to analog trickery, and this is where product plans can go wrong.