Video communication is one of the most resource demanding services any network has to support due to its high bandwidth requirement, bursty and real time nature. This paper investigates a new multiplexing scheme that improves the network efficiency by reducing the burstiness or variability of the combined MPEG video streams. 6 MPEG sources were individually processed and packetized then the packets joined a common queue and were served by an ATM server controlled by leaky bucket. The simulations were run based on both real MPEG 1 video sequences and sequences modeled by the TES technique. The TES model adopted was a composite of a number of individual processes in order to capture the characteristics of a MPEG video source. The advantages and limitations of the network efficiency significantly while maintaining the acceptable quality of service. The proposed TES model developed is a versatile method to simulate random video sources with various characteristics. The result can be used as a basis for the design and management of VOD like applications.