E.g. a 320x240 video has 3 seconds at 25fps, i.e. 75 frames and key frames are created each second. Frame sizes will then be something like:
20kB 2kB 3kB 1kB 2kB [20 more frames] 22kB 2kB 1kB 2kB [...]
Now, this technique might be good when compressing images - have a large image that roughly approximates the original and then a smaller one reducing the errors. Or even better, multiple smaller images that correct local errors?I suggest we create a startup immediately. Someone might already have a cool video explaining how their compression algorithm is going to change the web and the world.
edit: others already thought of this: https://sonnati.wordpress.com/2010/10/19/h-264-for-image-com...
See: https://people.xiph.org/~xiphmont/demo/daala/demo2.shtml
As to why it wasn't done for JPEG, etc.? Mostly the cost of hardware implementations in compute and memory. Think of all the cheap cameras etc. that used JPEG, the 8x8 block coding and integer representation of the discrete cosine transform coding made this possible.