Like DVD, EVD video data is compressed, but according to the format's developers, Beijing-based E-World and US digital video technology company On2, it is capable of displaying HDTV images, a feat currently not possible with the established standard.

Mainly funded by the Chinese government, it's somewhat likely the new format won't really make it to the world but was developed with the Republic of China in mind. Given that they are the biggest manufacturer of DVD players in the world (and have a huge internal market as well), yet they still have to pay royalties to the Japanese conglomerate that developed the DVD format, the EVD (Enhanced Video Disc) format will be their key to bypass such expenses.