The present invention has utility of providing systems and methods for video processing for use in real-time interactive display systems which produce improved video transmission bandwidth with negligible latency thus providing a seamless video feed to enhance real-time interactive displays. The present invention solves the unmet need to optimize video image transmission in real time and after the video source image processing stage, allowing for increased bandwidth for video image processing without losing perceptible image quality or adding perceptible latency. Aspects of the present invention provide systems and methods which analyze pixels of video in real-time and encodes an alternate, reduced bandwidth, data stream for immediate transmission to a receiver where another instance of the codec decodes the received data stream and restores the video's images without introducing perceptible latency.