I was under the impression that the first 100,000 units are free, and then 20c per unit afterwards to a max of $25m.
H264 drops to 10c per unit after 5m units, to a max of $6.5m.
You need to be shipping 125 million units annually to hit the full $25m.
Yes it's more, but it's not quite ten times. And notably if the chip maker pays the royalties, then the content creators don't need to (though that was excepted indefinitely with H264).
Parts regurgitated from a quick google for reference [1]
It is actually more then 10x. The annual cap for H.264 royalty fees is 6.5M from MPEG-LA. For H.265 it is 25M from MPEG-LA, AND 50M from HEVC-Advance. That is a total of 75M. And like others have pointed out there are Technicolor patents fees not included.
So it depends how these royalty works in details. If only the chip manufacture are paying, Mediatek, Qualcomm, Samsung, Intel, AMD, Nvidia, Apple. That is at least 10 players paying maximum. And if you consider small players, the total contribution of Royalty fees to HEVC is 1 Billion / Year. ONE BILLION!! In the life time of a Video Codec that typically run at least a decade, these patents are 10 Billions.
Do you think that is a fair price, i think everyone should decide for their selves.