The reduction of output bitrate of video source (of I-frames) and consequently the improvement of multiplexeris gain are the main target of this paper. In reducing the bitrate, the SVD transform coding as an attractive alternative to the DCT coding was adopted. The SVD transformation just like DCT is a lossy image compression, but it can achieve a higher rate. The rank of SVD matrix transform was limited to maximum 21% of original value. Then our new algorithm so called ATSVD was introduced in further adaptively reducing the bitrate according to the details of image. Consequently, the output bitrate of video source was reduced to a fraction of its original value.
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