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In this paper, a perceptual encryption algorithm is proposed. The perceptual feature requires that the quality of visual data be partially degraded by encryption. This algorithm selectively encrypts fixed-length code words in video input with three control factors. It provides useful features, viz. strict-size preservation, on-the-fly encryption and multiple perceptibilities. This makes it possible to support applications with different requirements. In addition, this algorithm is secure against ciphertext only attack and Known/Chosen -plaintext attack.