A method and apparatus for compressing and transmitting both video and graphics portions of an interactive program guide (IPG). For an IPG that comprises a graphics portion and at least one video portion, the inventive system separately encodes the video portion and the graphics portion. The video portion is slice-base encoded using a predictive encoder, e.g., an MPEG encoder, that produces a bitstream comprising intra-coded picture slices and predictive-coded picture slices. The graphics portion is separately slice-base encoded to produce encoded slices of the graphics image. The encoded slices of the graphics portion can be stored in a database and recalled as needed for transmission. To transmit an IPG, a transport stream is created containing the intra-coded and predicted picture streams as well as the encoded slices that comprise a graphics image that is to be included in the IPG. The receiver reassembles the components of the IPG into a comprehensive IPG.