Data of both MPEG-2 and MPEG-4 is generated simultaneously with a small circuit scale and a small power consumption. A moving picture encoding apparatus for encoding a moving picture through motion-compensated inter-frame prediction has: a MPEG-2 encoding unit including a motion vector estimator, a frame memory, a forward prediction circuit, a bidirectional prediction circuit, a prediction selection circuit, an intra-frame encoding circuit and a local decoding circuit; a MPEG-4 encoding unit including a frame extraction circuit for extracting a predetermined MPEG-2 frame and a transcoder for encoding the extracted frame; a motion vector calculator calculating a motion vector to be used for MPEG-4 prediction from a motion vector to be used for MPEG-2 prediction; and a prediction mode controller controlling the prediction mode of the MPEG-2 encoding unit in such that the MPEG-2 prediction mode becomes coincident with the MPEG-4 prediction mode.

 
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