System, device, and method for improved encoding and enhanced compression of images, videos, and media content. A method includes: (a) receiving a source image, and analyzing its content on a pixel-by-pixel basis, and classifying each pixel as either (I) a pixel associated with Photographic content, or (II) a pixel associated with Non-Photographic content; (c) generating a pixel-clusters map that indicates (i) clusters of pixels that were classified as Photographic content, and (ii) clusters of pixels that were classified as Non-Photographic content; (d) generating a composed image, by: (d1) applying a first encoding technique, particularly lossy encoding, to encode pixel-clusters that were classified as Photographic content; (d2) applying a second, different, encoding technique, particularly lossless encoding, to encode pixel-clusters that were classified as Non-Photographic content.