Video compression is the heart of digital television set top boxes, DSS, HDTV decoders, DVD players, video conferencing, internet video and other applications. These benefit in the fact that they require less storage space for archived video information and less bandwidth for transmission. An efficient approach to distributed video coding is the Transform domain Wyner-Ziv (TDWZ) video coding. Existing system use optical flow based motion re-estimation technique and a generalized reconstruction algorithm for video coding. Based on this findings a new method is proposed where wavelet transform instead of the discrete cosine transform followed by compression using Set Partitioning In Hierarchical Tree (SPIHT) have been proposed. SPIHT algorithm is a fast and efficient technique for compression also the main advantage of wavelet transform over discrete cosine transform is that it has both time and frequency localization ability, which can give a better performance in compression.
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