YCbCr image data may be dithered and converted into RGB data shown on a 8-bit or other bit display. Dither methods and image processors are provided which generate the banding artifact free image data during this process. Some methods and image processors may applying a stronger dither having a same mean with a larger variance to the image data before it is converted to RGB data. Others methods and image processors may calculate a quantization or encoding error and diffuse the calculated error among one or more neighboring pixel blocks.