The invention is intended to reduce overall image degradation when frame interpolation is performed by means of an adaptive image compression technique. A compression unit which adaptively compresses input image data, determines an error rate, i.e., a quantity of data loss, depending on input image data. A compression rate is set, depending on the determined error rate (or the quantity of data loss). For an image that is likely to be degraded by compression because of a large error rate determined for it, a process of generating an interpolated image by an interpolated image generating unit is disabled and an original image is used instead of an interpolated frame.