Abstract: The present invention provides methods and apparatus for improving video quality in statistical multiplexing. For each encoding channel in a statistical multiplexer, a respective bit rate need parameter is calculated for encoding of a current frame in that encoding channel. A video buffering verifier level (VBV_Fullness) available to each encoding channel is also calculated. It is then determined whether the VBV_Fullness available to each encoding channel is sufficient for encoding the current frame of that encoding channel based on an initial complexity estimate for that current frame. In the event that the VBV_Fullness is determined to be sufficient, the current frame is encoded using the need parameter. In the event that the VBV_Fullness is determined to be insufficient, the need parameter is scaled by an adaptive panic multiplier and the current frame is encoded using the scaled need parameter.