Abstract: A technique for digital video processing in a predictive manner is provided. In one embodiment, a method for processing digital video signals for live video applications comprises providing video data that comprise a plurality of frames, identifying a first frame and a second frame in the frame sequences, and processing the information of the first frame and the information of the second frame to determine a quantization step for the second frame. The step of processing the information of the first frame and the information of the second frame further comprises calculating a sigmaSAD value for the second frame, calculating a divisor value for the second frame, and calculating the quantization step for the second frame. In another embodiment, a system for processing digital video signals for live video applications comprises a memory unit within which a computer program is stored. The computer program instructs the system to process digital video in a predicative manner.