1. In video and multimedia, bit-rate reduction of an image signal by powerful algorithms that compress beyond what is achievable in lossless compression or in quasi-lossless compression. Note: Lossy compression accepts loss of information and introduction of artifacts that can be ignored as unimportant when viewed in direct comparison with the original. Lossy compression takes advantage of the subtended viewing angle for the intended display, the perceptual characteristics of human vision, the statistics of image populations, and the objectives of the display. 2. In video technology, a digital image compression technique that removes redundant bits from an image in return for a minor loss of image quality.