Most digital video is encoded using lossy compression, per Wikipedia:
:thmbup:
I see where you're going with the differentiation now.
On the technical side, compression doesn't matter. The process of capturing the image is still a series of still frames. The shutter moves from in front of the sensor, exposing it to light, and then covering again.
Even though this wiki references what's called 'Long GOP' compression, you still have to save it within a series of frames. The exact job of a "frame" in digital vs film/video cameras is slightly different, in digital it's basically reduced to not much more than a chronological measurement, but the camera still records a series of frames. It's like putting a shortcut on your desktop, the program still has to exist on the drive. So the frame with the information must still exist in order to be replicated on other frames.
Even if I take a Long-GOP video and slow it down to 9fps, it will look like a series of images to you.