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In this paper, a performance evaluation of the state-of-the-art H.264/AVC video coding standard is carried out with the aim of determining its feasibility when applied to hyperspectral image compression. Results are obtained based on configuring diverse parameters in the encoder in order to achieve an optimal trade-off between compression ratio, accuracy of unmixing and computation time. In this sense, simulations are developed in order to measure the spectral angles and signal-to-noise ratio (SNR), achieving compression ratios up to 0.13 bits per pixel per band (bpppb) for real hyperspectral images. Moreover, in this work it is detected which blocks in the encoder contribute the most to performance improvements of the compression task for the particular case of this type of images, and which ones are not relevant at all and hence could be removed. This conclusion yields to reduce the future design complexities of potential low-power/real-time hyperspectral encoders based on H.264/AVC for remote sensing applications.