A computer-implemented system and method for performing video compression are described. For example, a method according to one embodiment comprises: encoding a first plurality of video frames or portions thereof, wherein each encoded video frame or portion thereof is dependent on a previously-encoded video frame or portion thereof, respectively; transmitting the first plurality of encoded video frames or portions to a client device; receiving feedback information from the client device, the feedback information usable to determine whether data contained in the video frames or portions has not been successfully received and/or decoded; in response to detecting that a video frame or portion thereof has not been successfully received and/or decoded, encoding a current video frame or portion thereof to be dependent on a previously-encoded video frame or portion thereof known to have been successfully received and/or decoded on the client device; and transmitting the current video frame or portion thereof to the client device.