In this paper, we propose a Wavelet based watermarking system. The system uses Wavelet transform for red, green and blues channel independently. We use space-time coding for encoding the watermark message before data embedding.The bit-error-rate of the recovered message is calculated. The embedding factor is selected in such a way that the host video maintains the same quality with/without using space-time coding. The developed system is further examined, when host video faces compression and noise addition. The result shows the effectiveness of the proposed watermarking system, especially when space-time coding is used.