A low bit-rate video coding technique that uses spatio-temporal geometric transforms is presented. Motion compensation based on the bilinear transform is employed to reduce the temporal redundancy of the video. The spatial redundancy of the motion compensated error images is reduced by a combination of fractal and DCT. It is shown that in the objects boundaries of the motion compensated error image fractal outperforms DCT, while in the smooth areas DCT is better than fractal. A hybrid combination of fractal and DCT gives the best result. The performance of this hybrid codec with geometrically transformed motion compensation is compared against the H.261 standard video codec at 64 kbit/s.