Transmitting high-quality neurophysiology video via the Internet is a challenging problem in telemedicine. We propose a novel content-selective video data processing and compression method based on the Discrete Wavelet Transform (DWT). Our algorithm is adaptive to intraoperative monitoring video data and has a great scalability on real-time network bandwidth allocation. When compared with the general-purpose video compression methods, our method offers higher quality within the critical field of neurosurgery.