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Practical [[video compression]] emerged with the development of [[motion compensation|motion-compensated]] [[Discrete cosine transform|DCT]] (MC DCT) coding,<ref name="Lea"/><ref name="Ghanbari"/> also called block motion compensation (BMC)<ref name="ITU"/> or DCT motion compensation. This is a hybrid coding algorithm,<ref name="ITU"/> which combines two key [[data compression]] techniques: [[discrete cosine transform]] (DCT) coding<ref name="Lea"/><ref name="Ghanbari"/> in the [[spatial dimension]], and predictive [[motion compensation]] in the [[temporal dimension]].<ref name="ITU"/>
DCT coding is a [[lossy]] block compression [[transform coding]] technique that was first proposed by [[Nasir Ahmed (engineer)|Nasir Ahmed]], who initially intended it for [[image compression]], while he was working at [[Kansas State University]] in 1972. It was then developed into a practical image compression algorithm by Ahmed with T. Natarajan and [[K. R. Rao]] at the [[University of Texas]] in 1973, and was published in 1974.<ref name="Ahmed">{{cite journal |last=Ahmed |first=Nasir |author-link=N. Ahmed |title=How I Came Up With the Discrete Cosine Transform |journal=[[Digital Signal Processing (journal)|Digital Signal Processing]] |date=January 1991 |volume=1 |issue=1 |pages=4–5 |doi=10.1016/1051-2004(91)90086-Z |bibcode=1991DSP.....1....4A |url=https://www.scribd.com/doc/52879771/DCT-History-How-I-Came-Up-with-the-Discrete-Cosine-Transform}}</ref><ref name="pubDCT">{{Citation |first1=Nasir |last1=Ahmed |author1-link=N. Ahmed |first2=T. |last2=Natarajan |first3=K. R. |last3=Rao |title=Discrete Cosine Transform |journal=IEEE Transactions on Computers |date=January 1974 |volume=C-23 |issue=1 |pages=90–93 |doi=10.1109/T-C.1974.223784|s2cid=149806273 }}</ref><ref name="pubRaoYip">{{Citation |last1=Rao |first1=K. R. |author-link1=K. R. Rao |last2=Yip |first2=P. |title=Discrete Cosine Transform: Algorithms, Advantages, Applications |publisher=Academic Press |___location=Boston |year=1990 |isbn=978-0-12-580203-1}}</ref>
The other key development was motion-compensated hybrid coding.<ref name="ITU"/> In 1974, Ali Habibi at the [[University of Southern California]] introduced hybrid coding,<ref name="Habibi">{{cite journal |last1=Habibi |first1=Ali |title=Hybrid Coding of Pictorial Data |journal=IEEE Transactions on Communications |date=1974 |volume=22 |issue=5 |pages=614–624 |doi=10.1109/TCOM.1974.1092258}}</ref><ref>{{cite journal |last1=Chen |first1=Z. |last2=He |first2=T. |last3=Jin |first3=X. |last4=Wu |first4=F. |title=Learning for Video Compression |journal=IEEE Transactions on Circuits and Systems for Video Technology |date=2019 |volume=30 |issue=2 |pages=566–576 |doi=10.1109/TCSVT.2019.2892608 |arxiv=1804.09869 |s2cid=13743007 }}</ref><ref>{{cite book |last1=Pratt |first1=William K. |title=Advances in Electronics and Electron Physics: Supplement |date=1984 |publisher=[[Academic Press]] |isbn=9780120145720 |page=158 |url=https://books.google.com/books?id=OX00AAAAIAAJ |quote=A significant advance in image coding methodology occurred with the introduction of the concept of hybrid transform/DPCM coding (Habibi, 1974).}}</ref> which combines predictive coding with transform coding.<ref name="ITU"/><ref>{{cite book |last1=Ohm |first1=Jens-Rainer |title=Multimedia Signal Coding and Transmission |date=2015 |publisher=Springer |isbn=9783662466919 |pages=364 |url=https://books.google.com/books?id=e7xnBwAAQBAJ&pg=PA364}}</ref> He examined several transform coding techniques, including the DCT, [[Hadamard transform]], [[Fourier transform]], slant transform, and [[Karhunen-Loeve transform]].<ref name="Habibi"/> However, his algorithm was initially limited to [[intra-frame]] coding in the spatial dimension. In 1975, John A. Roese and Guner S. Robinson extended Habibi's hybrid coding algorithm to the temporal dimension, using transform coding in the spatial dimension and predictive coding in the temporal dimension, developing [[inter-frame]] motion-compensated hybrid coding.<ref name="ITU"/><ref name="Roese">{{cite journal |last1=Roese |first1=John A. |last2=Robinson |first2=Guner S. |editor-first1=Andrew G. |editor-last1=Tescher |title=Combined Spatial And Temporal Coding Of Digital Image Sequences |journal=Efficient Transmission of Pictorial Information |date=October 30, 1975 |volume=0066 |pages=172–181 |doi=10.1117/12.965361 |publisher=International Society for Optics and Photonics|bibcode=1975SPIE...66..172R |s2cid=62725808 }}</ref> For the spatial transform coding, they experimented with different transforms, including the DCT and the [[fast Fourier transform]] (FFT), developing inter-frame hybrid coders for them, and found that the DCT is the most efficient due to its reduced complexity, capable of compressing image data down to 0.25-[[bit]] per [[pixel]] for a [[videotelephone]] scene with image quality comparable to a typical intra-frame coder requiring 2-bit per pixel.<ref>{{cite book |last1=Huang |first1=T. S. |title=Image Sequence Analysis |date=1981 |publisher=[[Springer Science & Business Media]] |isbn=9783642870378 |page=29 |url=https://books.google.com/books?id=bAirCAAAQBAJ&pg=PA29}}</ref><ref name="Roese"/>
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