The present invention provides methods for determining block averages in film grain simulation including determining block averages during a display process and determining block averages during a decoding process. The methods of the present invention exhibit different characteristics in terms of memory requirements and computational cost. More specifically, the first method uses no external memory, but requires either extra reads of the blocks, or internal memory in the display pipeline, while the second method requires extra memory bandwidth and extra external memory (e.g., RAM).