To preserving the privacy as well as maintain security of video it needs to be stored in an encrypted format. For copyright protection, access control and transaction tracking we use information hiding techniques, that can be embedded a secret message and secret image into a video bit stream. The quality of video in the absence of the original reference assesses by information hiding techniques. The edge quality information and the no of the bit streams processed in an encrypted format to maintain security as well as privacy. In this paper hiding information directly in the encrypted version of H.264/AVC video stream is proposed. The proposed scheme contains the three main parts, i.e. encryption of video, embedding secret message and extraction of secret message and video. After analyzing the H.264/AVC codec property, the code words of intra prediction modes (IPM), the code words of motion vector differences (MVD), and the code words of residual coefficients are encrypted. The data hider embeds additional data in the encrypted domain, they use the code word substitution technique. The code word substitution technique gives information without knowing the original video content. After decryption of video secret message remains hidden, its invisible to a human observer. The extraction of data can be done either in the encrypted or in the decrypted domain.