A new interpretation of transform coding is developed that downplays quanti
zation and emphasizes entropy coding, allowing a comparison of entropy codi
ng methods with different memory requirements. With conventional transform
coding, based on computing Karhunen-Loeve transform coefficients acid then
quantizing them, vector entropy coding can be replaced by scalar entropy co
ding without an increase in rate, Thus the transform coding advantage is a
reduction in memory requirements for entropy coding. This paper develops a
transform coding technique where the source samples are first scalar-quanti
zed and then transformed with an integer-to-integer approximation to a nono
rthogonal linear transform. Among the possible advantages is to reduce the
memory requirement further than conventional transform coding by using a si
ngle common scalar entropy codebook for all components. The analysis shows
that for high-rate coding of a Gaussian source, this reduction in memory re
quirements comes without any degradation of rate-distortion performance.