A method of image and video compression including data re-ordering to improve the performance of the core compression algorithm. In the inventive method, pixel values of at least part of an image are examined and then re-ordered into a new order that has greater compactability than the original pixel order. The re-ordered pixel values are then compressed, e.g., by block transform. In the particular case of a compression scheme employing a block transform, the inventive method reduces the complexity of the transform coefficients, resulting in more efficient compression. The method may be added to existing compression algorithms with only minor modifications to the bitstream and decoder architecture.