The present invention provides an apparatus and method of transmitting and switching multimedia data over an Ethernet network. The method includes allocating a portion of an Ethernet bandwidth for channel allocation, receiving a multimedia signal, assigning a channel allocation priority to the multimedia signal, transmitting data including the channel allocation priority in the allocated portion of the Ethernet bandwidth, performing video predictive coding on the multimedia signal to create a video predictive coded multimedia signal, and transmitting the video predictive coded multimedia signal over the network in real time. The multimedia signal comprises a composite video signal.