The following paper introduces a low bitrate video coding method on the basis of 3D motion compensated wavelet transform and SPIHT algorithm. In contrast to the conventional algorithms applying motion compensation and differential coding, here wavelet transform is used to exploit the opportunities of time redundancy. For coefficient collection, the 3D version of SPIHT algorithm was selected from the various procedures developed for wavelet transform. Motion vectors are compressed, too (also by wavelet transform), therefore the time and spatial redundancy of coding is exploited here as well. These procedures result in effective video compressing and can easily be aligned to the MPEG4 standard
