In this book a video signal processing algorithm is proposed which is Modified H.264/AVC as a solution for Bandwidth saving through LBR (Low Bit Rate) applications to ensure acceptable video quality. Based on this concept, where the intraframe pictures are hybrid wavelet-based coded and the interframe pictures are coded with a Modified H.264/AVC encoder and decoder is proposed. Use of Modified H.264/AVC algorithm shows that this proposed hybrid encoder and decoder not only retains the same quality of the video but also lowers down the bit rate of the video considerably. AES based encryption and decryption system is proposed for added security for transmission and reception. The proposed algorithm is characterized by their efficient compression ratio, good PSNR, MSE results and lower bit rate as well as its efficient implementation in MATLAB.