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Theory
Video data contains spatial and temporal redundancy. Similarities can thus be encoded by merely registering differences within a frame (spatial) and/or between frames (temporal). Spatial encoding is performed by taking advantage of the fact that the human eye is unable to distinguish small differences in colour as easily as it can changes in brightness and so very similar areas of colour can be "averaged out" in a similar way to jpeg images (JPEG image compression FAQ, part 1/2). With temporal compression only the changes from one frame to the next are encoded as often a large number of the pixels will be the same on a series of frames (About video compression). Lossless compressionSome forms of data compression are lossless. This means that when the data is decompressed, the result is a bit-for-bit perfect match with the original. While lossless compression of video is possible, it is rarely used. This is because any lossless compression system will sometimes result in a file (or portions of) that is as large and/or has the same data rate as the uncompressed original. As a result, all hardware in a lossless system would have to be able to run fast enough to handle uncompressed video as well. This eliminates much of the benefit of compressing the data in the first place. For example, digital videotape can't vary its data rate easily so dealing with short bursts of maximum-data-rate video would be more complicated than something that was fixed at the maximum rate all the time. Intraframe vs interframe compressionOne of the most powerful techniques for compressing video is interframe compression. Interframe compression uses one or more earlier or later frames in a sequence to compress the current frame, while intraframe compression uses only the current frame, which is effectively image compression.
Since interframe compression copies data from one frame to another, if the original frame is simply cut out (or lost in transmission), the following frames cannot be reconstructed properly. Some video formats, such as DV, compress each frame independently using intraframe compression. Making 'cuts' in intraframe-compressed video is almost as easy as editing uncompressed video -- one finds the beginning and ending of each frame, and simply copies bit-for-bit each frame that one wants to keep, and discards the frames one doesn't want. Another difference between intraframe and interframe compression is that with intraframe systems, each frame uses a similar amount of data. In most interframe systems, certain frames (such as "I frames" in MPEG-2) aren't allowed to copy data from other frames, and so require much more data than other frames nearby. It is possible to build a computer-based video editor that spots problems caused when I frames are edited out while other frames need them. This has allowed newer formats like HDV to be used for editing. However, this process demands a lot more computing power than editing intraframe compressed video with the same picture quality. See Editing HDV. Current formsToday, nearly all video compression methods in common use (e.g., those in standards approved by the ITU-T or ISO) apply a discrete cosine transform (DCT) for spatial redundancy reduction. Other methods, such as fractal compression, matching pursuits, and the use of a discrete wavelet transform (DWT) have been the subject of some research, but are typically not used in practical products (except for the use of wavelet coding as still-image coders without motion compensation). Interest in fractal compression seems to be waning, due to recent theoretical analysis showing a comparative lack of effectiveness to such methods. The use of most video compression techniques (e.g., DCT or DWT based techniques) involves quantization. The quantization can either be scalar quantization or vector quantization; however, nearly all practical designs use scalar quantization because of its greater simplicity. In broadcast engineering, digital television (DVB, ATSC and ISDB ) is made practical by video compression. TV stations can broadcast not only HDTV, but multiple virtual channels on the same physical channel as well. It also conserves precious bandwidth on the radio spectrum. Nearly all digital video broadcast today uses the MPEG-2 standard video compression format, although H.264/MPEG-4 AVC and VC-1 are emerging contenders in that domain. See also
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