A novel video coding scheme based on leaky prediction is proposed

and its superiority against conventional predictive video coding is

demonstrated in environments with moderate to heavy packet loss. The

strength of the scheme stems from the fact that it explicitly takes

into account the two modes of operation (packet loss or no packet

loss) at the decoder and optimizes the corresponding reconstruction

filters together with the prediction filter at the encoder

simultaneously. The prediction coefficient tends to be significantly

smaller than the correlation coefficient between two corresponding

frames.