Conditional Replenishment is an interframe video compression method that uses correlation in time to reduce video transmission rates. This method works by detecting and sending only the changing portions of the image and by having the receiver use the video data from the previous frame for the non-changing portion. The amount of compression that can be achieved through this technique depends to a large extent on the rate of change within the image, and can vary from 10 to 1 to less than 2 to 1. An additional 3 to 1 reduction in rate is obtained by the intraframe coding of data blocks using a 2-dimensional variable rate Hadamard transform coder. A further additional 2 to 1 rate reduction is achieved by using motion prediction. Motion prediction works by measuring the relative displacements of a subpicture from one frame to the next. The subpicture can then be transmitted by sending only the value of the 2-dimensional displacement. Computer simulations have demonstrated that data rates of 2 to 4 Mega-bits/second can be achieved while still retaining good fidelity in the image.