Abstract: In a method and apparatus for producing a signal for transmission to a receiver, a video signal is converted to digital form and the data of sequential frames of the signal are arranged in a plurality of blocks of pixel data that numerically represent visual characteristics of the respective pixels of the frame image. Each block is further organized as a matrix of pixel data. The pixel data of the blocks of a "previous" video frame, and a current video frame, are stored in a memory. A row of each block of the current video signal is compared with the corresponding row of the previous video frame, and a list is made of blocks in which the averages of the pixel data exceed a predetermined threshold. The pixel data of the listed blocks with lossy compression, and is encoded for transmission along with high definition data of a predetermined number of blocks of unchanged data.