Yes, but the Sloot method was supposed to be loss-less. When we talk lossy, it gets trickier because then the definition of the expectation with % of loss and error % should be defined. I am sure we'll have AI's that can produce Terminator-ish in a bit; the thing is, it will be similar to you reminding the movie; it will be similar for the bigger plot, but a lot of details will be completely off/wrong. That's not the type of compression/encoding mr Sloot was talking about.

Edit: encryption was supposed to be encoding/compression.