Algorithmic parameterization and hardware architectures can ensure secure transmission of multimedia data in resource-constrained environments such as wireless video surveillance networks, tele-medicine frameworks for distant health care support in rural areas, and Internet video streaming. Joint multimedia compression and encryption techniques can significantly reduce the computational requirements of video processing systems. We present an approach to reduce the computational cost of multimedia encryption, while also preserving the properties of compressed video (useful for scalability, transcoding, and retrieval), which endanger loss by naive encryption. Hardware-amenable design of proposed algorithms makes them suitable for real-time embedded multimedia systems. This approach alleviates the need of additional hardware for encryption in resource constrained scenario, and can be otherwise used to augment existing encryption methods used for content delivery in Internet or other applications. In this work, we show how two compression blocks for video coding: a modified frequency transform (called as Secure Wavelet Transform or SWT) and a modified entropy coding scheme, (called Chaotic Arithmetic Coding (CAC)) can be used for video encryption. A bit sensitivity analysis for key and plaintext is presented along with experimental tests for selective encryption are given.