Abstract: A method and apparatus for bit rate allocation, or statistical multiplexing, in a multi-channel video data encoder. A pre-processor in each channel determines a bit rate need prior to compression and encoding. A control processes the bit rate need in each channel to arrive at an allocated bit rate for each channel. The video data is then compressed and encoded according to the allocated bit rate. The bit rate demand accounts for various characteristics of the current picture data in each channel, including spatial activity, temporal activity, image size, frame rate, scene change, brightness, flash, fade, and horizontal pixel resolution.