1. Variable quantization apparatus for an image encoder system having an interconnected transformer, quantizer, and entropy encoder, comprising: variable quantization means operatively connected to the transformer and the quantizer responsive to plurality of blocks of data from the transformer to determine the characteristics of a plurality of blocks of digital pixel data inputted to the transformer by computing an image related metric for each of the plurality of blocks of data; quantization factoring means connected to said variable quantization means for providing a predetermined lossy quantization factor for each metric; and said variable quantization means including means for causing the quantizer to apply a lossy quantization factor to each of the plurality of blocks of data based on said metric for the block of data to provide a plurality of blocks of quantized data to the entropy encoder.