From Farshid Lashkari, "I've attached another modified version of the IVE loader which

supports compressing the image data. The option to compress the data
is "compressImageData". Currently it uses the jpeg plugin to write the
image. Maybe we could add an option that allows the user to specify
which image format to use. The jpeg writer supports specifying the
quality of the jpeg, so you could use the following command line to
convert the skydome.osg model to IVE using 50% jpeg quality:

osgconv -O "compressImageData JPEG_QUALITY 50" skydome.osg skydome.ive"

src/osgPlugins/ive/DataInputStream.cpp

@@ -837,6 +837,7 @@ osg::Image* DataInputStream::readImage(IncludeImageMode mode)
             }
             break;
         case IMAGE_INCLUDE_FILE:
+        case IMAGE_COMPRESS_DATA:
             // Read image file from stream
             {
                 std::string filename = readString();