A video processing device receives video data and transmits the video to a display device at a new bit rate that is dynamically adjusted based on variable conditions. The new bit rate is adjusted, at least, by scaling the video and/or a residual image and may be adjusted utilizing compression functions, compression parameters, scale factor, frame rate, color space, and chroma sub-sampling. The display receives video at the adjusted new bit rate and decompresses the video in accordance with corresponding adjustments in the video processing device. Bit rate determination is based on variable operating conditions, display information, image quality, BER, packet error, SNR, desired level of compression, energy consumption, link congestion and display capabilities. Video may be scaled prior to compression. The video may comprise a frame and/or a slice. DPCM, H.264, AVC, transform compression and scaling may be utilized. The display may utilize intra-frame spatial prediction.