In a method of video data compression a video frame in a sequence of frames is
divided into a number of macroblocks, a particular macroblock being adjacent to
a number of previously coded macroblocks including both intra-coded and inter-coded
macroblocks. The method includes selecting either a full prediction or limited
prediction type in encoding the particular macroblock to provide a corresponding
data bit stream, full prediction using both adjacent inter-coded and intra-coded
macroblocks, and limited prediction using intra-coded macroblocks only. A signal
is provided along with the bit stream to indicate the selected prediction type
to a decoder disposed to recover data from the bit stream. The prediction type
may be either signaled explicitly, such as by providing a code word in the bit
stream, or may be inferred implicitly by selected values or levels of a coding variable.
