Scalability has become an important feature for video coding algorithm design for heterogeneous networks due to variable bandwidth, variable wired and wireless network conditions and variable terminal capabilities. However, the best video compression algorithms are based on temporal prediction through motion compensation which do not lend themselves naturally to a scalable framework. More recently, hybrid coding schemes have been introduced that combine a base-layer motion-compensation coder with an enhancement layer which offers fine-grain scalability through an embedded or progressive coder. Such a framework usually results in some compression efficiency loss over the best single layer motion compensated scheme. Here, we introduce a hybrid coding scheme which combines a base-layer MC coder and a finely scalable enhancement layer where the information from the base-layer is used to determine the location of the high energy signal in the enhancement layer. This coder provides better compression results than embedded approaches which do not rely on base layer information.
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