The Motion Pictures Experts Group (MPEG) has made substantial progress
in developing a standard for digital video and audio compression and
multiplexing suitable for broadcast applications. However it may not b
e clear how MPEG 2 will actually be used in each application. Efforts
to make the standard as flexible as possible in order to cross industr
y boundaries have also led to a plethora of choices as to how to explo
it its capabilities. This article describes MPEG 2's operational chara
cteristics, how these indicate applications for which the standard is
well suited, and other applications that MPEG 2 may only satisfy in a
limited fashion. The importance of these questions is driven by the ec
onomies of scale and interoperability that become available to each ap
plication that can support MPEG 2.