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In multimedia system design, storage and transport of information play a significant role. Multimedia information is inherently voluminous and therefore requires very high storage capacity and very high bandwidth transmission capacity. There are two approaches that are possible - one to develop technologies to provide higher bandwidth (of the order of Gigabits per second or more) and the other to find ways and means by which the number of bits to be transferred can be reduced, without compromising the information content. There are two approaches that are possible - one to develop technologies to provide higher bandwidth (of the order of Gigabits per second or more) and the other to find ways and means by which the number of bits to be transferred can be reduced, without compromising the information content, i.e. data compression. Data compression is often referred to as coding, whereas coding is a general term encompassing any special representation of data that achieves a given goal. Information coded (compression) done at the source end has to be decoded at the receiving end.