Lossy coding of speech, high-quality audio, still images, and video is
commonplace today. However, in 1948, few lossy compression systems we
re in service. Shannon introduced and developed the theory of source c
oding with a fidelity criterion, also called rate-distortion theory. F
or the first 25 gears of its existence, rate-distortion theory had rel
atively little impact on the methods and systems actually used to comp
ress real sources. Today, however, rate-distortion theoretic concepts
are an important component of many lossy compression techniques and st
andards, me chronicle the development of rate-distortion theory and pr
ovide an overview of its influence on the practice of lossy source cod
ing.