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A novel paradigm for optimized scalable video streaming is presented. The paradigm proposes transmission of motion vectors and selected code-blocks of the JPEG 2000 representation of each new frame, instead of frame differences as in existing methods. These code-blocks are selected to achieve the highest MSE. This paradigm overcomes the flexibility and accessibility limitations imposed by predictive motion compensated video by relying on the JPEG 2000 stream features for spatial scalability and on motion compensation and server-optimized conditional replenishment for temporal redundancy reduction. It is expected that real-time and interactive applications, such as teleconferencing and surveillance, would benefit most from this paradigm. This paper introduces the paradigm, formulates an optimization procedure for one simple case where it can be applied and compares its performance with alternate strategies.