Compressed digital video bitstreams are segmented into video segments. A staging processor performs transrating on the original video segments and generates several transrated output video segments. The output video segments are combined into a video block for further distribution. A bit rate switch selects among the transrated video segments from the video block to provide a statistically multiplexed output bitstream. The bit rate switch can also select local stream segments, such as advertisements, for content insertion purposes. A transprocessor including multiple encoder output features is also provided.