1. A method of digital watermarking, encrypting, or both, of an input signal containing information, comprising: generating, using a processor, a first data reduced signal from said input signal by data reducing said input signal; subtracting, using a processor, said first data reduced signal from said original data signal resulting in a first remainder signal; generating, using a processor, a second data reduced signal from said first data reduced signal by data reducing said first data reduced signal; digitally watermarking or encrypting, using a processor, said first data reduced signal or said second data reduced signal to create a third signal; and generating an output signal using said third signal.