As more and more consumers get HDTV sets, the demand for more HD content is growing. (And the manufacturers of the HDTVs want more HD content to be delivered, as this should help drive increased demand for the new sets.) One problem for satellite services is that they have limited bandwidth over which to transmit their content, and the higher-resolution HD content can consume more that its share of that bandwidth.
LG Electronics has been tapped by DirectTV to build set-top boxes that can decode signals encode with the new MPEG-4 compression scheme. This will let more HD content be transmitted over the existing bandwidth. Expect MPEG-4 compatible DVRs and other devices from LG in the near future.