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A novel joint video encoding and statistical multiplexing (StatMux) method for broadcasting over digital video broadcasting for handhelds (DVB-H) channels is proposed to improve the quality of encoded video and to decrease the end-to-end delay in a broadcast system. The main parts of end-to-end delay in a DVB-H system result from a time-sliced transmission scheme that is used in DVB-H and from the bit rate variations of service bit streams. The time-sliced transmission scheme is utilized in DVB-H to reduce the power consumption of DVB-H receivers. Variable bit rate (VBR) video bit streams are used in DVB-H to improve the video quality and compression performance. The time-sliced transmission scheme has increased the channel switching delay, i.e., switching to a new audio-visual service, in DVB-H. The used VBR bit streams increase the required buffering delays in the whole system. The different parts of end-to-end delay in a DVB-H system can be affected by the used video encoding and multiplexing methods. Different scenarios for encoding and StatMux of video sources for DVB-H application are studied in this paper. Moreover, a new method for jointly encoding and StatMux of video sources is proposed that not only decreases the end-to-end delay but also improves the average quality of compressed video by dynamically distributing available bandwidth between the video sources according to their relative complexity. Performance of the proposed method is validated by simulation results.