IEEE 802.11p/ITG-G5 vehicle-to-vehicle communication technology, which enables the new class of safety and infotainment applications, is currently an emerging research topic in both industry and academia. The proposed spectrum allocation of 10 Mhz channels for DSRC (Dedicated Short Range Communication) in 5.9 GHz band for the USA and Europe allows considering the transmission of video information between vehicles as one of the grounding blocks for future automotive applications. Although several published works addressed the problems of video content delivery in VANETs (Vehicular Ad-hoc NETworks), no work has been reported on real-world measurements of visual quality for video being transmitted over the IEEE 802.11p vehicle-to-vehicle communication channel. This paper presents a real-time scalable video codec as well as the first results of visual quality measurements for the video information transmitted using the off-the-shelf Componentality FlexRoad DSRC equipment. © 2013 IEEE.