This paper presents a novel hybrid Multi-scale, perceptual and vector quantization based video coding scheme. In intra mode of operation, a wavelet transform is applied to the input frame and decorrelate it into a number of subbands. The lowest frequency subband is losslessly coded. The coefficient of the high frequency subbands are pixel quantized using perceptual weights, which specifically designed for each high frequency subband. The quantized coefficients are then coded using quadtree-coding scheme. In the inter mode of operation, displaced frame difference is generated using overlapped block motion estimation / compensation to exploit the interframe redundancy. A wavelet transform is then applied to the displaced frame difference to decorrelate it into a number of subbands. The coefficients in the resulting subbands are coded using an adaptive vector quantization scheme. To evaluate the performance of the proposed codec, the proposed codec and the adaptive subband vector quantization coding scheme (ASVQ), which has been shown outperforms H.263 at all bitrates, were applied to a number of test sequences. Results indicate that the proposed codec outperforms ASVQ subjectively and objectively at all bit rates.
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