Data compression system

A data compression system is described in which TV PCM data for each line scan is received in the form of a succession of multibit pixel words. All or selected bits of each word are compressed by providing difference values between successive pixel words and coding the difference values of a selected number of pixel words forming a block into a fundamental sequence (FS). The FS, based on its length and the number of words per block, is either transmitted as the compressed data or is used to generate a code FS or its complement is used to generate a code FS bar. When the code FS is generated, its length is compared with the original block PCM and only if the former is the shorter of the two is the code transmitted. Selected bits per pixel word may be compressed, while the remaining bits may be transmitted directly, or some of them may be omitted altogether.