For a very long time video processing dealt exclusively with fixed-rate sequences of rectangular shaped images. However, interest has been recently moving toward a more flexible concept in which the subject of the processing and encoding operations is a set of visual elements organized in both time and space in a flexible and arbitrarily complex way. The moving picture experts group (MPEG- 4) standard supports this concept and its verification model (VM) encoder has adopted scalable rate control (SRC) as the rate control scheme, which is based on the spatial domain and compatible with constant bit rate (CBR) and variable bit rate (VBR). In this paper,a new rate control algorithm based on the DCT domain instead of the pixel domain is presented. More-(over), macroblock level rate control scheme to compute the quantization step for each macroblock has been adopted. The experimental results show that the new algorithm can achieve a much better result than the original one in both peak signal-to-noise ratio (PSNR) and the coding bits, and that the new algorithm is more flexible than test model 5 (TM5) rate control algorithm.
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