A method of compressing image data representing one or more images, the method including: a) obtaining pixel data from the image data, the pixel data representing an array of pixels within the one or more images; b) applying a transformation to the pixel data to determine a set of frequency coefficients indicative of frequency components of the array of pixels; c) selecting one of a plurality of bit encoding schemes, wherein each of the plurality of bit encoding schemes selectively encodes different frequency coefficients with respective different numbers of bits to provide a different degree of compression, wherein the bit encoding scheme defines the number of bits to be used to encode each of the frequency coefficients; d) selectively encoding the frequency coefficients using the selected bit encoding scheme to thereby generate a set of encoded frequency coefficients, so that when the frequency coefficients are selectively encoded: i) at least some of the encoded frequency coefficients are encoded with different numbers of bits, wherein the encoded frequency coefficients are encoded by at least one of: applying a scaling factor to frequency components to determine scaled frequency components and selecting one or more scaled frequency components in accordance with the selected bit encoding scheme; and, using a number of bits to encode frequency coefficients based on an expected magnitude of the frequency coefficients; and, ii) at least one frequency coefficient is discarded so that the set of encoded frequency coefficients is smaller than the set of frequency coefficients; and, e) generating compressed image data using the encoded frequency coefficients; characterised in that the bit encoding scheme is selected at least in part based on: i) a transmission bandwidth or a transmission quality of service of a wireless communications link used to transmit the compressed image data to a wearable digital reality headset or display device; ii) a desired degree of compression; and, iii) an absolute position of the array of pixels in the one or more images. a) obtaining pixel data from the image data, the pixel data representing an array of pixels within the one or more images; b) applying a transformation to the pixel data to determine a set of frequency coefficients indicative of frequency components of the array of pixels; c) selecting one of a plurality of bit encoding schemes, wherein each of the plurality of bit encoding schemes selectively encodes different frequency coefficients with respective different numbers of bits to provide a different degree of compression, wherein the bit encoding scheme defines the number of bits to be used to encode each of the frequency coefficients; d) selectively encoding the frequency coefficients using the selected bit encoding scheme to thereby generate a set of encoded frequency coefficients, so that when the frequency coefficients are selectively encoded: i) at least some of the encoded frequency coefficients are encoded with different numbers of bits, wherein the encoded frequency coefficients are encoded by at least one of: applying a scaling factor to frequency components to determine scaled frequency components and selecting one or more scaled frequency components in accordance with the selected bit encoding scheme; and, using a number of bits to encode frequency coefficients based on an expected magnitude of the frequency coefficients; and, ii) at least one frequency coefficient is discarded so that the set of encoded frequency coefficients is smaller than the set of frequency coefficients; and, i) at least some of the encoded frequency coefficients are encoded with different numbers of bits, wherein the encoded frequency coefficients are encoded by at least one of: applying a scaling factor to frequency components to determine scaled frequency components and selecting one or more scaled frequency components in accordance with the selected bit encoding scheme; and, using a number of bits to encode frequency coefficients based on an expected magnitude of the frequency coefficients; and, applying a scaling factor to frequency components to determine scaled frequency components and selecting one or more scaled frequency components in accordance with the selected bit encoding scheme; and, using a number of bits to encode frequency coefficients based on an expected magnitude of the frequency coefficients; and, ii) at least one frequency coefficient is discarded so that the set of encoded frequency coefficients is smaller than the set of frequency coefficients; and, e) generating compressed image data using the encoded frequency coefficients; i) a transmission bandwidth or a transmission quality of service of a wireless communications link used to transmit the compressed image data to a wearable digital reality headset or display device; ii) a desired degree of compression; and, iii) an absolute position of the array of pixels in the one or more images.