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Large video files processing involves a huge volume of data. The codec, storage systems and network needs resource utilization, so it becomes important to minimize the used memory space and time to distribute these videos over the Internet using compression techniques. Fractal image and video compression falls under the category of lossy compression. It gives best results when used for natural images. This paper presents an efficient method to compress  an AVI (Audio Video Interleaved) file with fractal video compression(FVC). The video first is separated into a sequence of frames that are a color bitmap images, then images are transformed from RGB color space to Luminance/Chrominance components (YIQ) color space; each of these components is compressed alone with Enhanced Partition Iterated Function System (EPIFS), then  fractal codes are saved. The classical IFS suffers from a very long encoding time that needed  to find the best matching for each range block when compared with the domain image blocks. In this work, the (FVC) is enhanced by enhancing the IFS of the fractal image compression using a classification scheme based on the Discrete Cosine Transform (DCT). Experimentation is performed by considering different block sizes and jump steps to reduce number of the tested domain blocks. Results shows a significant reduction in the encoding time with good quality and high compression ratio for different video files.