The present invention provides a technique for performing one or more aspects of video coding such as quantization, intra prediction coding or inter prediction coding in dependence on a perceptual model taking into account human sensitivity to data in the video signal. The perceptual model may relate to spatial frequency, temporal frequency, contrast sensitivity, colour sensitivity, a structural metric, and/or one or more parameters affecting perception such as motion in the video, the distance of a recipient user from the screen, and the size, aspect ratio or resolution of the screen of the recipient terminal.