A digital picture signal processing apparatus is disclosed, that comprises a picture processing means for compressing a captured digital picture signal, and a mode designating means for generating a signal that designates a picture processing operation of the picture processing means to a first mode or a second mode, wherein when the first mode is designated, the picture processing means generates first compressed picture data of which the digital picture signal is compressed by a non-inversible encoding method, and wherein when the second mode is designated, the picture processing means generates second compressed picture data of which the digital picture signal is digitized and the digitized picture signal is compressed by an inversible encoding method.