A system for video processing includes a video director, a video encoder, and a picture-in-picture inserter. The video director is configured to generate an edit signal. The video encoder is configured responsively to the edit signal to encode a first area of a video frame of a main video as a first encoded data set, to encode a second area of the video frame as a second encoded data set, and to generate a compressed main video including the first and second encoded data sets. The picture-in-picture (PIP) inserter is configured, responsively to the compressed main video and to a compressed secondary video including a third encoded data set, to generate a compressed PIP video including the first encoded data set and the third encoded data set, and to transmit the compressed PIP video for subsequent decoding.