The Public Broadcasting Service (PBS) established American television's first satellite program distribution system in 1978. PBS presently uses one C-band transponder and six Ku-band transponders on the AT&T Telstar 401 satellite to distribute television program material to the approximately 200 satellite receiving earth stations that serve some 346 public television stations. The replacement satellite system now being implemented to take public television well into the 21st century includes digital video compression. This paper provides the details on the implementation of digital video compression within the framework of the public television satellite replacement project