Some embodiments of the invention encode a sequence of video images based on “visual masking” attributes of the video images and/or portions of the video images. Visual masking of an image or a portion of the image is an indication of how much coding artifacts can be tolerated in the image or image portion. To express the visual masking attribute of an image or an image portion, some embodiments compute a visual masking strength that quantifies the brightness energy of the image or the image portion. In some embodiments, the brightness energy is measured as a function of the average luma or pixel energy of the image or image portion.