In many multimedia applications, image encryption has to be conducted prior to image compression. This paper proposes a JPEG-friendly perceptual encryption method, which enables to be conducted prior to JPEG and Motion JPEG compressions. The proposed encryption scheme can provides approximately the same compression performance as that of JPEG compression without any encryption, where both gray scale images and color ones are considered. It is also shown that the proposed scheme consists of four block-based encryption steps, and provide a reasonably high level of security. Most of conventional perceptual encryption schemes have not been designed for international compression standards, but this paper focuses on applying the JPEG and Motion JPEG standards, as one of the most widely used image compression standards. In addition, this paper considers an efficient key management scheme, which enables an encryption with multiple keys to be easy to manage its keys.