Megapixel is a new camera technology that provides resolution well above traditional surveillance camera technology.

The highest resolution traditional NTSC analog security cameras available, when recorded at the highest resolution available, would produce an image of 704 X 480 which is equal to 338k pixels which is roughly 1/3 of a megapixel.

The newer megapixel cameras by comparison start at 1.3 megapixel (1,300k) with 2, 5 and even 8 megapixel cameras becoming very common and affordable.

You can see a comparison of what an analog camera image looks like compared to a 2 megapixel image here: http://www.3xlogic.com/rsc/megapixel/megapixel-comparison.html

Not at this time in the mainstream market.

Analog cameras currently used in typical surveillance applications adhere to either the NTSC or PAL standard which are not high-resolution standards.

For this reason all megapixel cameras currently used for surveillance purposes are IP (Network) cameras which free manufacturers from the bonds of the NTSC and PAL standards enabling a wide variety of megapixel technology as well as different aspect ratios (panoramic video).

There has been talk of a new analog megapixel standard, but it will require new capture cards and cameras as well as DVR manufacturers to develop products to support it. At this point it appears that IP will be the predominant technology long before analog megapixel would have a chance to take hold.

While it may be beneficial in applications such as casinos where analog has a large installed infrastructure and closet space for IP switches is at a premium, any early adopters of analog IP may be taking a risk that the technology will not gain widespread market acceptance.

For the record:
NTSC (National Television System Committee) was the standard used for television in the US until recently.
PAL (Phase Alternating Line) is the European equivalent.

No.

It would take more than 6 of the best, top-of-the line, highest resolution analog cameras to equal the resolution of a single standard 2 megapixel camera. It does not matter what compression algorithm is used. Information that is not present cannot be created.

Additionally, while MPEG-4 and H.264 are two of the better codecs in current use, they were not designed for security applications and work best at high frame-rates (30 fps). If you record at less than 30 fps you need a codec specifically designed for security applications such as our Aztech codec.

There are certain situations where analog cameras still provide a cost effective solution for small coverage areas but they do not compare in any way to megapixel cameras, nor can they be made to perform better than they have for the last 30 years since they are based on the NTSC and PAL standards.