Abstract: Three-dimensional subband coding with motion compensation (MC- 3DSBC) has been demonstrated $LB@1-4$RB to be an efficient technique for video coding applications. With half-pixel- accurate motion compensation, images need to be interpolated for motion-compensated (MC) temporal filtering. The resulting analysis/synthesis system is not invertible. In this paper, we propose a new three-dimensional analysis/synthesis system which guarantees perfect reconstruction and has a nonrecursive coding structure. We replaced the analysis/synthesis system of $LB@1$RB by the new scheme. The resulting coding system does not have distortion from the analysis/synthesis system and allocate bits among classes of 3-D subbands optimally in the sense of rate-distortion function. The experimental results show that the proposed video coding system improves $LB@1$RB by PSNR .3 - 2.0 dB and TM5 MPEG $LB@10$RB by PSNR 2.1 - 3.0 dB over a range of bit rates. !10
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