An MPEG processor is provided. According to one aspect of the processor, multiple MPEG data streams for corresponding channels are individually stored in an off-chip memory. Corresponding data for a channel is then retrieved from the off-chip memory for processing. The retrieved data is then decoded. The decoded results and associated information are stored on the off-chip memory. Some or all of the associated information that can be used for decoding subsequent data is stored in an on-chip memory. When video images need to be displayed, the corresponding data that is needed for that purpose is then retrieved from the off-chip memory and provided to an analog encoder for encoding in a format that is compatible with an analog display device.