Aspects of a method and system for processing and delivery of multimedia content by an integrated femtocell and set-top-box device are provided. In this regard, a cellular enabled communication device may communicate its capabilities, preferences, and/or settings to an integrated femtocell and set-top-box device, wherein the integrated femtocell and set-top-box device may processes multimedia content for the cellular enabled communication device based on the capabilities, preferences, and/or settings of the cellular enabled communication device. Additionally, the cellular enabled communication device may receive the processed multimedia content from the integrated femtocell and set-top-box device by the cellular enabled communication device. The capabilities, preferences, and/or settings may comprise multimedia processing capabilities, preferences, and/or settings, communication capabilities, preferences, and/or settings, and/or power conditions, preferences, and/or settings. The integrated femtocell and set-top-box device may process the multimedia content to generate a plurality of subset datastreams.