Lossy coding of speech, high-quality audio, still images, and video is commonplace today. However, in 1948, few lossy compression systems were in service. Shannon introduced and developed the theory of source coding with a fidelity criterion, also called rate-distortion theory. For the first 25 years of its existence, rate-distortion theory had relatively little impact on the methods and systems actually used to compress real sources. Today, however, rate-distortion theoretic concepts are an important component of many lossy compression techniques and standards. We chronicle the development of rate-distortion theory and provide an overview of its influence on the practice of lossy source coding.
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