A system and method for digital watermarking a video signal with an increased bit rate is achieved by inserting the additional information which constitutes the watermarking signal within the video signal on the chrominance signal. Thus, the additional information is “impressed” upon the chrominance component of the video signal. The human visual system is much less sensitive to chrominance than to luminance, and therefore, additional distortion which results from the higher bit rate can be allowed on the chrominance signal and yet such distortion will not be detected by the human visual system.