Wavelet coding has been shown to achieve better compression than DCT coding. This method outperforms DCT JPEG codecs and moreover allows scalability. 2D DWT can be easily extended to 3D and thus applied to video coding [1, 2, 3, 4, 5, 6, 7, 8]. However, 3D subband coding of video suffers from two drawbacks. The first is the amount of memory required for coding large 3D blocks; the second is the lack of temporal quality due to the sequence temporal splitting. In fact, 3D block-based video coders produce jerks. They appear at blocks temporal borders during video playback. In this paper we propose a new temporal scan-based wavelet transform method for video coding combining the advantages of wavelet coding (performance, scalability) with acceptable reduced memory requirements, no additional CPU complexity and avoiding jerks. We also propose an efficient quality allocation procedure to ensure a constant quality over time.