Object-based video representations are considered to be useful for easing the process of multimedia content production and enhancing user interactivity in multimedia productions. Object-based video presents several new technical challenges, however. Firstly, as with conventional video representations, compression of the video data is a requirement. For object-based representations, it is necessary to compress the shape of each video object as it moves in time. This amounts to the compression of moving binary images. This is achieved by the use of a technique called context-based arithmetic encoding. The technique is utilised by applying it to rectangular pixel blocks and as such it is consistent with the standard tools of video compression. The blockbased application also facilitates well the exploitation of temporal redundancy in the sequence of binary shapes. For the first time, context-based arithmetic encoding is used in conjunction with motion compensation to provide inter-frame compression. The method, described in this thesis, has been thoroughly tested throughout the MPEG-4 core experiment process and due to favourable results, it has been adopted as part of the MPEG-4 video standard. The second challenge lies in the acquisition of the video objects. Under normal conditions, a video sequence is captured as a sequence of frames and there is no inherent information about what objects are in the sequence, not to mention information relating to the shape of each object. Some means for segmenting semantic objects from general video sequences is required. For this purpose, several image analysis tools may be of help and in particular, it is believed that video object tracking algorithms will be important. A new tracking algorithm is developed based on piecewise polynomial motion representations and statistical estimation tools, e.g. the expectationmaximisation method and the minimum description length principle.