VIDEO COMPRESSION SYSTEM AND METHOD FOR REDUCING THE EFFECTS OF PACKET LOSS OVER A COMMUNICATION CHANNEL

Methods for hosting low-latency streaming interactive audio/video (A/V) include executing one or more video games or applications on a server communicatively coupled to a data network. Packet streams are received from a plurality of users and routed to the one or more video games. The packet streams include user control input that are used to compute A/V data in response. The A/V data are received from the video games or applications. Portions of the A/V data are compressed in parallel using processing units resulting in low-latency streaming compressed A/V data. The low-latency streaming compressed A/V data are routed to each of the users over a corresponding data network communication channel. The executing of video games, receiving of packet streams and A/V data, compressing portions of the A/V data and routing the compressed A/V data are performed with a latency such that at least one user has the perception that the controlled video game is responding instantly.