Compression, a.k.a. video compression, is the term for how much you compact the data packets to be able to send the signal out. Think vacuum sealed items. Compression usually is performed by special programs designed using algorithms that reduce raw data by as much as 1000x.
Example: In order to go to the drive in movie for the lowest cost possible, you have to squeeze/compress as many family and friends as humanly possible into the trunk.
Video compression standards include:
- MPEG-4 Part 2
- H.264 ( a.k.a. MPEG-4 Part 10 or MPEG-4 AVC)