Hi, I worked as a summer intern for Google's compression team, and compared different LZ77 engines in lossless image compression. Last week we launched brotli, a new general purpose compression algorithm, and we anticipated that people would like to know how it performs in image compression. After all, PNG is a successful format based on zlib, and replacing zlib by brotli seems like a logical thing to do.
I used WebP lossles encoder's filtering and transform stage to generate data that was consequently fed to the LZ77 engines (gzip, zopfli, xz, and brotli). Even the best of these general purpose algorithms (a customized version of brotli) degrades the WebP lossless compression density by 2.7 %, so we concluded that simple PNG or WebP derivatives with a general purpose LZ77 engine do not provide a competitive alternative.
You can read the comparison of other compression algorithms used in this experiment as well as changes I did to brotli's context modelling to be suitable for image compression in this doc:
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Mislav