A promising new video compression format

The company Euclid has announced that they have developed a new video compression format which, in certain situations, is capable of obtaining a compression ratio of over 15,000 to 1.
Beyond this flashy example, this format should gain a lot of ground.
Unlike the current formats (MPEG2 and MPEG4), the method of compression does not try to find similar pixels nearby, but tries to find shapes and follow their movements by modeling them and compressing them in a more effective manner.
One can imagine that the processing power required for encoding and decoding will be quite high, but this process could make it possible to offer videos for download, as high quality films would be a few hundred MB.