We propose a new video compression method based on MCTF(motion compensated temporal filtering) with constant quality. SPECK is an efficient image compression coding method of encoding DWT coefficients. Especially SPECK method is very efficient for coding the motion compensated residual image which usually has larger amounts of high frequency components than the natural images. And proposed multi block size hierarchical motion estimation technique is more efficient than classical block matching algorithm with fixed block size both in estimation precision and operation costs. Proposed video method based on MCTF video compression can also support multi-frame rate decoding with reasonable complexity. Simulation results showed that proposed method outperforms H.263 video compression standard.