We propose a robust Perceptual Video Encryption technique by selecting one out of multiple unitary transforms according to the encryption key generated from random permutation method at the transformation stage. Our aim is to produce a down graded video sequence for the customers those who did not pay. From business point of view this perceptual video encryption is very important.To overcome the drawbacks of huffman coding we implement adaptive arithmetic encoder at the coding stage. By the introduction of above said algorithms definitely we achieve an efficient video encryption.This methodology will be useful for video-based services over networks.