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Current methods of compressing 3D animation for transmission over the Internet tend to be of very low quality. Quality is sacrificed to keep bandwidth low when using lossy compression techniques such as MPEG, Cinepak, or more recent formats such as Vivo and VDOnet. While these techniques can be effective approaches to all-purpose video compression, it should be possible to achieve better performance with the knowledge that the source consists of 3D animation. A new technique is proposed, which instead of focusing on compressing the rendered frames of the animation sequence, compresses and optimizes the original source scene data for streaming, and renders the 3D scene in real time on the client system.