In this chapter, performance analysis of HEVC (Recommendation ITU-T H.265 | ISO/IEC 23008-2) in comparison with AVC (Recommendation ITU-T H.264 | ISO/IEC 14996-10) in terms of both objective as well as subjective quality assessments are given. Because of the increased flexibility offered by HEVC, methods to select the best coding parameters, in a rate-distortion sense, are also described. Special care has been taken to apply a unified approach when con- ducting subjective and objective quality evaluation between HEVC and AVC. Our overall evaluation study results show the coding efficiency of HEVC to be about twice higher than that of AVC.