H.264 DVRs right now offer the highest resolution recording and display on the CCTV market. H.264 compression is hardware compressed. All the light a CCTV camera takes is digitized and compressed so only the smoothest picture is displayed and then recorded. MPEG-4 DVRS compress through codecs. This is a more advance than MJPEG but is still substandard to H.264 compression.
About H.264 Digital Video Recorders
H.264 DVRs utilize advanced video coding that is based on block-oriented motion-compensation. H.264 is is the most efficient real-time recording DVR encoding in the CCTV industry. H.264 video was created by the Video Coding Experts Group. Their main goal was to provide high video quality at the lowest bit rate without the high cost or complex design. H.264 has the most consistent and stable platform for PC based DVRs.
Some of the features a H.264 Security DVR are multi-picture inter-picture prediction, quarter-pixel precision, (which enables precise description of the displacements of moving areas), six-tap filtering, (which means sharper sub pixel motion-compensation).
H.264 DVRs Have Smart Search Software Features
H.26 DVRs also have advance features on the software side. An example of H.264 DVR technology is it's smart search feature. Smart search is enabled by video codecs, that search for movement of a target area. This lowers the amount of recorded data that you have to sift through. If you have a grocery store and certain items went missing at a specific location, then you can map out a box and only show video surveillance that includes motion for that area. This allows you to keep a close eye on specific zones where unpaid, consumed, or stolen goods frequently occur, without having to constantly monitor them.