Abstract: An improved method and a system of utilizing the decoding/encoding video resources of a Video Processing Device (VPD) by offering a distributed architecture. A conventional VPD comprises a plurality of video ports, each video port is dedicated to a user and comprises at least one decoder and one encoder. The distributed VPD comprises a plurality of input ports and a plurality of output ports. Each input port includes an input module. The input module is operative to receive a compressed video input stream, manipulate the compressed video stream into a primary stream and optionally generate a secondary data stream associated with the primary data stream. A variety of levels of service for a session can be offered. A client may select the number of ports that will be used by the session. For example, a single port may multicast its compressed output video stream to all the destinations within a session, or to all destinations within a plurality of ports.