Abstract
This paper describes mathematical frameworks on temporal and spatial predictive processing in the motion-compensated video compression. Firstly, the coding gain over intra coding is derived, regarding the bit allocation algorithm and Lagrange multiplier method. The optimal ordering of three different picture types (I, P and B pictures) is clarified according to image source characteristics. Secondly, a novel framework with the block-based multihypothesis motion-compensated optimal coding gain and bit allocation are derived in a closed-form expression.