In this work, a color video compression scheme based on motion block matching method is proposed and designed. At first, shot boundary detection is applied using one of three criteria. This unit is used to dynamically partition the video sequences into group of pictures (GOPs). Each group of picture is then coded individually by using both inter and intra frame coding. An adaptive scheme is designed and implemented for the intra frame coding, using an adaptive block subband partitioning scheme. In this scheme, the frame is transformed by the wavelet transform based on the lifting scheme, and then encoding each block of the subband separately. Finally, for the inter frame coding part, an enhanced block’s motion estimation is proposed and applied, it is a modified version of One at a Time Search (OTS) block matching algorithm.