A data compression system and method for achieving enhanced compression performance in a plurality of encoder-decoder pairs communicatively coupled in a concatenated chain is disclosed. The plurality of encoder-decoder pairs receive input data and transform the input data into compressed output data. The data compression system includes at least one quality estimator communicatively coupled to the concatenated chain to determine a plurality of quality metrics corresponding to an output from each of the plurality of encoder-decoder pairs. Further, the data compression system also includes a processing subsystem configured to optimize the operation of each of the plurality of encoder-decoder pairs based upon the plurality of quality metrics to achieve a desired level of optimization for the concatenated chain.