1. A method of processing a video file, the method comprising the computer implemented steps of: preprocessing initial video data to detect one or more significant objects represented in the initial video data by: identifying reoccurring salient components in the initial video data; qualifying the significance of the reoccurring salient components; and selecting one or more of the most significant of the qualified salient components, the selected one or more most significant components resulting in the detected one or more significant objects; segmenting the detected one or more significant objects form the non-object components in the initial video data, the segmentation resulting in object and non-object portions of the initial video data that are processed differently, such that the non-objects and the detected one or more significant objects are encoded separately using distinct encoding processes; creating one or more object models for the detected one or more significant objects to provide a compact representation of the detected one or more significant objects; archiving the object models; comparing one or more of the archived object models to determine whether there are substantially equivalent object models stored in the archive; reducing the size of the archive by eliminating the redundant substantially equivalent object models; and configuring the archived object models for use when processing at least one other video file that is comprised of other video data, the other video data being distinct from the initial video data used to create the archived object models; coding salient objects of the at least one other video file using a transform encoding process with reference to the archived object models, and coding non-object portions of the at least one other video file using a transform encoding process without reference to the object model archive.