The present invention allows higher quality video images to be transmitted without a concomitant increase in a total number of video data bits transmitted per frame. Quantization parameters are applied to coefficients of macroblocks within a given video frame. A lower value of the quantization parameter is applied near a central region of a video frame. This central region is referred to as a prime video region. Applying the lower quantization parameter to the prime video region has the effect of increasing the video data bit density within that area. Outside of the prime video region, the video data bit density per macroblock is decreased so as to have a zero net-gain in bit density over the entire video frame. Furthermore, there may be a plurality of prime video regions where quantization parameters are dynamically coded. In this case, the value of the quantization parameter will increase or decrease within a given prime video region based on a relative importance of a particular prime video region. Consequently, a quantization parameter matrix may vary depending on the video scene.