In this paper, we propose a novel method for watermarking compressed video for streaming. The proposed method performs motion compensated watermarking. There are two consequences of this; rst we see that the impact of the watermark on the nal bitrate is negligible, and the proposed method has inherent robustness to mild packet losses in the channel. Experimental results show that the proposed method operates at lower distortion levels and has higher watermark detection rates compared to current watermarking methods. We observe 20% bitrate reduction for the same watermark detection rate. We also show that when data partitioning is used over a packet loss channel the proposed method performs at acceptable watermark detection rates.