In recent years, video entertainment demand has significantly changed. Video content is transmitted through different bandwidth connections and played on many devices that have different processing capabilities and screen sizes. For this reason, scalable extensions of video coding standards have been released, e.g SHVC, scalable extension of HEVC. Beside high compression efficiency, SHVC has disadvantages including high encoder complexity and weakness in error resilience. These are not suitable for emerging applications such as wireless sensor networks, video surveillance systems or remote sensing that have limited processing capabilities, low energy and low network bandwidth. A potential solution supporting for these systems is Distributed Scalable Video Coding (DSVC). In DSVC system, Side Information (SI) creation plays a critical role in deciding system overall performance. Therefore, this paper proposes a spatially scalable DSVC architecture and a new side information creation technique for this DSVC system. Results show that the proposed method generates better quality SI when compared to some previous SI creation methods. Consequently, the system performance is improved when compared with the previous methods.
