I believe it is something to do with bit depths. JPEG2000 can support up to 16-bits whereas H264 only can support up to 10-bits. So using H264 8/10-bits could p

I believe it is something to do with bit depths. JPEG2000 can support up to 16-bits whereas H264 only can support up to 10-bits. So using H264 8/10-bits could produce noticeable artifacts when it is being used in a big screen. So using JPEG2000 will alleviate the artifacts since it have higher bit depth as it have extra space for more information to fit in. Here another article [1] I found recently that discussed why Movie theaters use JPEG2000 over popular video format. [1] https://www.design-reuse.com/articles/4595/digital-cinema-reels-from-motion-jpeg2000-advances.html https://www.design-reuse.com/articles/4595/digital-cinema-re...