Peak codec is the point in time when the maximum rate of new codec discoveries is reached, after which time discovery of new codecs enters terminal decline.
The multimedia enthusiast community is divided on the existance of peak codec. For many, peak codec is believed to have occurred in 2003-2005 coinciding with wide-spread industry and user adoption of MPEG-4 ASP and AVC technologies. Others, namely Xiph and On2, are optimistic about the development of new codec innovation.
This phenomena has forced reverse engineers to seek unconventional sources of codecs, including those found in computer videos games, demoscene software and other technologies of zero practical utility.