Today, nearly all commonly used video compression methods (e.g., those in standards approved by the ITU-T or ISO) apply a discrete cosine transform (DCT) for spatial redundancy reduction. The DCT that is widely used in this regard was introduced by N. Ahmed, T. Natarajan and K. R. Rao in 1974. Other methods, such as fractal compression, matching pursuit and the use of a discrete wavelet transform (DWT) have been the subject of some research, but are typically not used in practical products (except for the use of wavelet coding as still-image coders without motion compensation). Interest in fractal compression seems to be waning, due to recent theoretical analysis showing a comparative lack of effectiveness of such methods.
What does a DCT do?
spatial redundancy reduction