This article is from the MPEG FAQ, by Frank Gadegast phade@cs.tu-berlin.de with numerous contributions by others.
The 16x16 area corresponds to the Least Common Multiple (LCM) of 8x8
blocks, given the normative 4:2:0 chroma ratio. Starting with medium
size images, the 16x16 area provides a good balance between side
information overhead & complexity and motion compensated prediction
accuracy. In gist, experiments showed that the 16x16 was a good
trade-off between complexity and coding efficiency.
 
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