Source Coding : this is done to reduce the size of the
information (data compression) being transmitted and conserve the
available bandwidth. This process reduces redundancy.
e.g. zipping files, video coding (H.264, AVS-China, Dirac)
etc.
Channel Coding : this is done to reduce errors during
transmission of data along the channel from the source to the
destination. This process adds to the redundancy of data.
e.g. Turbo codes, convolutional codes etc.