A method of distinguishing between regions of an image, separating and masking the original image into multiple image planes, and compressing each separated image plane with a compression method that is optimal for its characteristics. From a video stream, separate image streams can be compressed with different methods, and the separate image streams can be stored or transmitted at different rates. Alternatively, frame differencing can be applied to the separated streams.One method of distinguishing the region of interest is use of an input device to allow the viewer or broadcaster to dynamically select the shape, size, or position of the region.An alternate method of distinguishing the regions of interest is automated analysis of the characteristics of various regions of an image.