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Digital video coding technologies have become an integral part of the way we create, communicate, and consume visual information. In the first part of this two-part text, we introduced the fundamental source coding techniques entropy coding, quantization, prediction, and transform coding. The present second part describes the application of these techniques to video coding. We introduce the basic design of hybrid video encoders and decoders, explain the basic concepts of intra-picture coding, motion-compensated prediction, and prediction error coding, and discuss encoder optimization techniques. Special emphasis is put on a fair analysis of various design aspects and coding tools in terms of coding efficiency. We highlight the application of the discussed concepts in modern video coding standards and compare important standards with respect to the achievable coding efficiency.