Method for encoding digital video data corresponding to a sequence of original input video frames, comprising: encoding a first original input video frame into an INTER-frame, decoding and reconstructing said INTER-frame into a reference frame, and dividing a second original input frame into sub areas, characterized by for each sub area of said second original input frame, determining a level of motion in the sub area of said second original input video frame, creating an INTRA input frame comprising information from both said second original input video frame and said reference frame, wherein the ratio of information from said second original Input frame and said reference frame used for creating a sub area of said INTRA input frame corresponding to a sub area of said second original input frame is based on the level of motion identified in the corresponding sub area of said second original input frame, wherein if the level of motion in a first sub area of said second original input video frame is above a first threshold a corresponding first sub area of said INTRA input frame is created using information exclusively from said second original input video frame, wherein if the level of motion in a second sub area of said second original input video frame is below a second threshold a corresponding second sub area of said INTRA input frame is created using information exclusively from said reference frame, wherein if the level of motion in a third sub area of said second original input video frame is below a first threshold and above a second threshold a corresponding third sub area of said INTRA input frame is created using information from both said second original input video frame and said reference frame, and encoding said INTRA input frame into an INTRA-frame. encoding a first original input video frame into an INTER-frame, decoding and reconstructing said INTER-frame into a reference frame, and dividing a second original input frame into sub areas, characterized by for each sub area of said second original input frame, determining a level of motion in the sub area of said second original input video frame, creating an INTRA input frame comprising information from both said second original input video frame and said reference frame, wherein the ratio of information from said second original Input frame and said reference frame used for creating a sub area of said INTRA input frame corresponding to a sub area of said second original input frame is based on the level of motion identified in the corresponding sub area of said second original input frame, wherein if the level of motion in a first sub area of said second original input video frame is above a first threshold a corresponding first sub area of said INTRA input frame is created using information exclusively from said second original input video frame, wherein if the level of motion in a second sub area of said second original input video frame is below a second threshold a corresponding second sub area of said INTRA input frame is created using information exclusively from said reference frame, wherein if the level of motion in a third sub area of said second original input video frame is below a first threshold and above a second threshold a corresponding third sub area of said INTRA input frame is created using information from both said second original input video frame and said reference frame, and encoding said INTRA input frame into an INTRA-frame.