A video processing method includes: receiving an omnidirectional image/video content corresponding to a viewing sphere, generating a sequence of projection-based frames according to the omnidirectional image/video content and a viewport-based cube projection layout, and encoding the sequence of projection-based frames to generate a bitstream. Each projection-based frame has a 360-degree image/video content represented by rectangular projection faces packed in the viewport-based cube projection layout. The rectangular projection faces include a first rectangular projection face, a second rectangular projection face, a third rectangular projection face, a fourth rectangular projection face, a fifth rectangular projection face, and a sixth rectangular projection face split into partial rectangular projection faces. The first rectangular projection face corresponds to user's viewport, and is enclosed by a surrounding area composed of the second rectangular projection face, the third rectangular projection face, the fourth rectangular projection face, the fifth rectangular projection face, and the partial rectangular projection faces.