1. A method comprising: performing motion compensation to generate a first motion compensated prediction using a first block from a previously coded frame; generating a second motion compensated prediction for a second block to be coded from the first motion compensated prediction using a plurality of predictions in the spatial domain, including generating each of the plurality of predictions by generating block transform coefficients for the first block using a transform, generating predicted transform coefficients of the second block to be coded using the block transform coefficients, and performing an inverse transform on the predicted transform coefficients to create the second motion compensated prediction in the pixel domain; subtracting the second motion compensated prediction from a block in a current frame to produce a residual frame; and coding the residual frame.