In this work, we analytically study the complexity-performance trade-offs associated with video codecs based on the principle of source coding with side information at the decoder. We address three important aspects. First, we quantify the theoretical performance gains attained with side-information based codecs over prediction-based coders like MPEG under a lossy transmission scenario when there is drift. Secondly, we show that it is possible to closely approach MPEG's compression performance using sideinformation video coding principles with accurate DFD (Displaced Frame Difference) modeling even without sophisticated channel codes. Thirdly, we analytically show that the value of accurately estimating DFD statistics diminishes as the channel gets noisier.