Abstract: An encoder for coding multiple layers of video signal to provide for efficient use of bandwidth. The encoder produces an error signal based at least in part on criteria considered by a perceptual preprocessor which takes into account limitations inherent in human visual perception. If the error signal generated from a subject frame represents high priority data that would be visually perceptible by a viewer, as determined by the preprocessor, the error signal is coded onto a base layer and an error resilience layer of a coded signal for transmission. In the event that the error signal is determined to be of less priority, such as if it represents only slightly visually perceptible information, then the error signal is coded onto only a low priority layer of the coded signal.