A method and apparatus for combining video frame sequences with a video display of an interactive program guide (IPG). The apparatus comprises a plurality of compositors that combine background information, video frame sequences and program guide graphics into a single video frame sequence. The sequence is then digitally encoded to form an MPEG-like bitstream. The same background information and informational video is composited with a different program guide graphic to form another video sequence that is also encoded. A plurality of such sequences are produced with each sequence having a different program guide graphic. Each sequence is encoded and then multiplexed into a transport stream such that all the encoded sequences are transmitted to a subscriber's terminal using a single transport stream. As such, the subscriber can transition from one program guide to the next without interruption of the background or video display as the program guide graphic is changed.