This article is from the MPEG FAQ, by Frank Gadegast phade@cs.tu-berlin.de with numerous contributions by others.
The MPEG sweet spot is about 1.2 bits/pel Intra and 0.35 bits/pixel
inter. Experimentation has shown that intra frame coding with the
familiar DCT-Quantization-Huffman hybrid algorithm achieves optimal
performance at about an average of 1.2 bits/sample or about 6:1
compression ratio. Below this point, artifacts become non-transparent.
 
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