They're obviously similar in features, you can throw any modern codec meant for HD video and it'll probably be quite similar, but that doesn't meant they based on each other in any way
Also, VC-1 is WMV (based) codec.
WMV is just a container which has pretty much nothing to do with the actual VC-1 spec.(meaning you can implement vc-1 encode/decode without ever knowing what vmw container is)
I was just curious as the original claim from cal_guy was
VC-1 is not a subset of AVC, it's a separate codec standard with many signficant differences between them.
I agree it is separate specification and codec. The confusion part comes from differences between h264 and VC-1 and especially what are the many significant differences between the codecs.
I actually put considerable effort in finding what these significant differences are and couldn't figure it out. To me it looks just like some minor implementation details rather than significant differences in spec level. I would be curious to know what this significant difference is if someone is able to explain it.
To me it looks like ms hired the guy who did h264 spec and he did some further development on top of his existing stuff and it was then called vc-1(hence it could be argued VC-1 is somewhat based on h264).
To me it looks like the main point for VC-1 was to provide good quality with reasonable decoding requirement to make it more viable "back in the days". H264 diverged more and tries to cater from lowend to highend. h264 high profile contains much more functionality than VC-1 but also requires more from hardware doing the encode/decode. This deviation in goals allowed VC-1 to do optimizations that most likely are the significant difference(though to me it looks like minor implementation details)
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