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We propose a video coding scheme that departs from traditional motion estimation/DCT frameworks and instead uses Karhunen-Loeve transform (KLT)/Joint spatiotemporal prediction framework. In particular, a novel approach that performs joint spatial and temporal prediction simultaneously is introduced. It bypasses the complex H.26x interframe techniques and it is less computationally intensive. Because of the advantage of the effective joint prediction and the image-dependent color space transformation (KLT), the proposed approach is demonstrated experimentally to consistently lead to improved video quality, and in many cases to better compression rates and improved computational speed.