A method and apparatus for reducing the output bit rate in a video object planes sequence encoder. An approximation of the shape of an object on a current frame is generated and used, along with a predicted image of the object from a subsequent frame and an estimate of the displacement of the object, to predict an image of the object in a current frame. A stripe is formed around the predicted image and the picture elements contained in the stripe are assigned texture values. The predicted image and stripe are subtracted from the current frame to form an error signal which is masked by the approximate shape of the object and provided to an entropy coder for transmission at an output bit rate.