An MPEG compatible decoder receives encoded, compressed data in the form of image representative pixel blocks. The decoder includes a frame memory (20) for storing reconstructed pixel blocks incident to the decoding process. The previously decompressed data is re-compressed (30) before being written to the memory. Stored decompressed data is decompressed for display (34, 26), or as needed for decoding functions such as motion compensation processing (32, 22). The compression performed before writing data to memory is block-based compression using compressed data from one of two different compression paths (FIG. 3, 314, 320) which compress a given pixel block simultaneously.
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