The GOP boundary is established by looking at the picture layer parameter called GOP number stored within each picture record. The preferred system components and their operation have been described above and of course, alternative hardware may be substituted for the hardware disclosed in Figures 1A and IB. The construction of the audio interface unit 72 is hardware which is capable of performing the above-described functions. The term "causal" predictive coding is used because the prediction is made based on previously transmitted information, and the term "temporal" causal predictive coding is used because the prediction is performed in terms of temporal picture units. During the encoding process, the operator will be viewing the picture at the same time it is being recorded on VTR The encoded video stored on a digital storage medium also constitutes part of the invention. If the index of the macroblock indicates that the last macroblock of the macroblock type has not been processed, flow loops back to step
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