Digital compression techniques have made impressive progress in recent
years. Frequently, a reader of a paper on compression is left with th
e impression that one is getting something for nothing; however, compr
ession can only be achieved by leaving out unnecessary information abo
ut the image. A compression ratio of 20:1 simply means that 95% of the
information in the original image has been eliminated. There are only
two types of information that can be removed without seeing degradati
on in image quality: information that can be accurately predicted or i
nformation that the human visual system cannot see. This article will
discuss present compression techniques in terms of these two factors a
nd show how even further compression can be obtained by developing a c
omplete understanding of scene properties and those of visual percepti
on. From an analysis based on present knowledge of visual perception a
nd scene statistics, compression ratios in excess of 50:1 should be ac
hievable without perceptible degradation.