7 A motion compensation predicting coding apparatus includes a motion detector for comparing pixel data in an image signal with pixel data of the previous image signal to generate a motion vector. The motion vector is indicative of the displacement differences between the image signal and the previous image signal. The image signal may be organized into blocks of pixel data for a single field or for multiple fields when motion detection is performed on the image signal by the motion detector. A subtracter generates a prediction compensation error signal by subtracting the pixel data in the previous image signal from the pixel data of the image signal. A coder receives the prediction compensation error signal and generates an appropriate coded output. The apparatus may also include an adaptive blocking mechanism for receiving the prediction compensation error signal and organizing the data in the signal into blocks into one of several fashions as dictated by the motion vector.