Abstract: This paper describes a hybrid motion-compensated wavelet transform coder designed for encoding video at very low bit rates. The coder and its components have been submitted to MPEG-4 to support the functionalities of compression efficiency and scalability. Novel features of this coder are the use of overlapping block motion compensation in combination with a discrete wavelet transform followed by adaptive quantization and zerotree entropy coding, plus rate control. The coder outperforms the VM of MPEG-4 for coding of I-frames and matches the performance of the VM for P-frames while providing a path to spatial scalability, object scalability, and bitstream scalability.
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