If you are dealing with images you should definitely choose a lossy compression format (ie: pixel aware) preferably to any lossless one. That will give you much better results. Recompressing with a lossless format over a lossy one is a loss of time.
I would search through PIL to see what I can use. Something like converting image to jpeg with a compression ratio compatible with researched quality before sending should be very efficient.
You should also be very cautious if using UDP, it can lose some packets, and most compression format are very sensible to missing parts of file. OK. That can be managed at application level.