EVD stands forEnhanced Versatile Disc. It was developed byBeijing E-World, a consortium of companies. It was created to rival theDVD-Video format mainly inChina because the licensing fees associated with DVD-Video are considered quite high, about $13–$20 per hardware video player. EVD was made to expand on the DVD-Video format, in terms of what video and audiocodecs it used and of course, its ability to offer high definition video content.

The disc is the same size as CDs and DVDs and uses the same file system as DVD (UDF).On2 Technologies was to provide the video codecs for the format,VP5 andVP6, which are more efficient than theMPEG-2 video format used with DVD-Video. These codecs would also allow the storage of content at high resolutions. Royalties that would be paid to On2 Technologies for the use of the video technology was relatively low, around $2 (considerably lower than using MPEG-2)

For audio, the format would use an audio codec called"EAC" fromCoding Technologies. EAC stands forEnhanced Audio Codec. It supports mono, 2.0 stereo audio and 5.1 surround. The Chinese Government backed the development of the format, as it would reduce the country's tech industry's dependence on technology from foreign countries and lower the costs for manufacturers.

A legal dispute broke out between Beijing E-World and On2 Technologies over claims the On2 was not being properly paid. However, On2's claims were dismissed by an arbitrator. Since this legal dispute there hasn't been any major developments with the EVD format.

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