When two or more different video streams a e compressed for concurrent transmission of multiple compressed video bitstreams over a single shared communication channel, control over both (1) the transmission of data over the shared channel and (2) the compression processing that generates the bitstreams is exercised taking into account the differing levels of latency required for the corresponding video applications. For example, interactive video games typically require lower latency than other video applications such as video streaming, web browsing, and electronic mail. A multiplexer and traffic controller takes these differing latency requirements, along with bandwidth and image fidelity requirements, into account when controlling both traffic flow and compression processing. In addition, an off-line profiling tool analyzes typical video applications off-line in order to generate profiles of different types of video applications that are then accessed in real-time by a call admission manager responsible to controlling the admission of new video application sessions as well as the assignment of admitted applications to specific available video encoders, which themselves may differ in video compression processing power as well as in the degree to which they allow external processors (like the multiplexer and traffic controller) to control their internal compression processing.