Why compression is needed

Compression, data reduction or bit-rate reduction, is the technique of filtering out some of the information that is contained in a digital video signal. By eliminating selected data, the signal can be passed through a channel that has a lower bit rate. The ratio between the source and the channel bit rates is called the compression factor. At the receiving end of the channel an expander or decoder will attempt to restore the compressed signal to near its original range of values. A compressor is designed to recognize and pass on the useful part of the input signal known as the entropy. The remaining part of the input signal is called the redundancy. It is redundant because the filtered-out information can be predicted ...

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