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Transmission distortion analysis for video streams is a considerably challenging task. In this letter, a compressed-domain-based (CDB) transmission distortion model for precoded H.264/advanced video coding video streams is developed. Unlike the earlier schemes, which were based on pixel domain and required a complete decoding of the compressed video streams, the CDB model only requires some information on the video features, which can be directly extracted from the compressed video streams. Therefore, the complexity of the calculations is substantially reduced, which is well suited for real-time applications. More specifically, the model is applicable to the real-time transmission for precoded video streams, such as video on demand and mobile video. The experimental results demonstrate high accuracy of the model. Furthermore, an application example using the CDB model in resource allocation in real-time multiuser video communication reveals the applicability and effectiveness of the model.