Lossy or lossless compression and transmission, comprising the steps of: (i) receiving an input image; (ii) encoding it to produce a y latent representation; (iii) encoding the y latent representation to produce a z hyperlatent representation; (iv) quantizing the z hyperlatent representation to produce a quantized z hyperlatent representation; (v) entropy encoding the quantized z hyperlatent representation into a first bitstream, (vi) processing the quantized z hyperlatent representation to obtain a location entropy parameter μy, an entropy scale parameter σy, and a context matrix Ay of the y latent representation; (vii) processing the y latent representation, the location entropy parameter μy and the context matrix Ay, to obtain quantized latent residuals; (viii) entropy encoding the quantized latent residuals into a second bitstream; and (ix) transmitting the bitstreams.