In this paper a new psychovisual-based coding scheme is proposed. The analysis and the quantization stages, the two main functions which determine the performances of a coding scheme, are based on the human visual system properties. In the first stage, a filter bank decomposes images into subimages of perceptual significance when a contrast transformation is applied. Analytic cortex filters have been used because they provide an accurate modelization of visual receptive fields. The choice of subbands lies on psychovisual experiments led in the laboratory. It was found that visual information is processed through 17 channels. In the second stage the use of the local band-limited contrast yields very interesting properties concerning the quantization. A scalar and vector quantization have been considered. In this latter case the vector's construction methodology preserves the main properties of the human visual system about perception of quantization impairments and takes into account the masking effect due to interaction between subbands with the same radial frequency but with different orientations. The vector's components are the local band limited contrasts Cij (m, n) defined as the ratio between the luminance Lij at the point (m, n), which belongs to the radial subband i and angular sector j and the average luminance at this location. Hence the vector's dimension depends on the orientation selectivity of the chosen decomposition. The low pass subband, which is nondirectional is scalar quantized. A methodology for automatic subsampling matrix design was also developed. The performance have been evaluated on a set of images in terms of peak SNR, true bit rates, and visual quality. For the latter, no impairments are visible at a distance of four times the height of the used high quality TV monitor. The SNRs are about 6 to 8 dB under the ones of classical subband image coding schemes when producing the same visual quality. Another particularity of this approach, due to the use of the local band limited contrast, lies in the structure of the reconstruction image error which is found to be highly correlated to the structure of the original image.
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