High-end monitors and TVs based on LCD technology continue to increase their native display resolution to 4k by 2k and beyond. Subsequently, uncompressed pixel amplitude processing becomes costly not only when transmitting over cable or wireless communication channels, but also when processing with array processor architectures. For motion video content, spatial preprocessing from YCbCr 444 to YCbCr 420 is widely accepted. However, due to spatial low pass filtering in horizontal and vertical direction, quality and readability of small text and graphics content is heavily compromised when color contrast is high in chrominance channels. On the other hand, straight forward YCbCr 444 compression based on mathematical error coding schemes quite often lacks optimal adaptation to visually significant image content. We present a block-based memory compression architecture for text, graphics, and video enabling multidimensional error minimization with context sensitive control of visually noticeable artifacts. As a result of analyzing image context locally, the number of operations per pixel can be significantly reduced, especially when implemented on array processor architectures. A comparative analysis based on some competitive solutions highlights the effectiveness of our approach, identifies its current limitations with regard to high quality color rendering, and illustrates remaining visual artifacts.