To attain encoding proper to an observation condition of a transmission destination in the case of transmitting a picture.
An object extract device 6 separates picture data captured by a camera 1 on an A side in the unit of object, and they are given to an encoder 2. The encoder 2 applies wavelet transformation to a picture, applies quantization to obtained coefficient data and applies encoding compression to the quantized data. Then a multiplexer 7 multiplexes the obtained data into a coded data string, which is sent to a transmission line. The A side device acquires a distance DB between a monitor 4 at a B side device a picture transmission destination and a viewer and a resolution RB of the monitor 4 and sets a quantization parameter in the quantization processing of the encoder 2 so that the noise produced by quantization is made inconspicuous based on the DB, RB.