The current model for multicast transmission of video over the Internet assumes that a fixed average bandwidth is uniformly present throughout the network. Consequently, sources limit their transmission rates to accommodate the lowest bandwidth links, even though high-bandwidth connectivity might be available to many of the participants. We propose an architecture where a video transmission can be decomposed into multiple sessions with different bandwidth requirements using an application-level gateway. Our video gateway transparently connects pairs of sessions into a single logical conference by manipulating the data and control information of the video streams. In particular, the gateway performs bandwidth adaptation through transcoding and rate-control. We describe an efficient algorithm for transcoding Motion-JPEG to H.261 that runs in real-time on standard workstations. By making the Real-time Transport Protocol (RTP) an integral component of our architecture, the video gateway...