Since the ultimate receivers of encoded video are human eyes, the characteristics of human visual system should be
taken into consideration in the design of bit allocation to improve the perceptual video quality. In this paper, we
incorporate the structural similarity index as a distortion metric and propose a novel rate-distortion model to characterize
the relationship between rate and the structural similarity index. Based on the model, we develop an optimum bit
allocation and rate control scheme for H.264 encoders. Experimental results show that up to 25% bitrate reduction over
the JM reference software can be achieved. Subjective evaluation further confirms that the proposed scheme preserves
more structural information and improves the perceptual quality of the encoded video.
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