A compression technique in which the image signal is broken down into a series of frequency bands. This is a very efficient but the processing is more complex than for DCT-based compression that uses Fourier transforms. Although some wavelet-based compression was used by some manufacturers now all wavelet compression used in the media industry is JPEG 2000. It is prevalent in DCI digital cinema, is used in some new camcorders and is increasingly used in contribution and distribution circuits.

See also: JPEG 2000