1. A tangible computer-readable medium comprising computer-readable instructions for wavelet-and channel-based video encoding, wherein execution of said computer-readable instructions by one or more processors causes said one or more processors to carry out steps comprising: obtaining a digital video data stream comprising a plurality of video frames comprising at least one channel represented as a numerical array; selecting a wavelet transform to apply to at least one selected video frame selected from said plurality of video frames; applying said wavelet transform n times to said at least one channel of said at least one selected video frame to generate wavelet space data comprising level k preview data and level k support data for each of said at least one selected video frame, wherein said wavelet transform is applied, recursively if n>1, to said preview data, wherein n is an integer greater than zero and wherein k=1, 2,. .. , n; performing at least one conditional data substitution operation on at least one support channel data in at least one level k wavelet space, k greater than zero, to generate modified support space data; and generating compressed output data comprising level n preview data and said modified support space data.