A method of controlling output bitrate of a video encoder encoding a video sequence. The method comprises setting a long-term bit budget for a time period of at least one day for output of the video encoder, and determining a first allowable bitrate based on the long-term bit budget. The method further comprises determining an instantaneous bit restriction for output of the video encoder, and determining a second allowable bitrate based on the instantaneous bit restriction. Output bitrate is controlled based on the first allowable bitrate and the second allowable bitrate, such that the long-term bit budget, the first allowable bitrate and the second allowable bitrate are complied with. The method may be performed in a non-transitory computer-readable medium having instruction stored thereon. The method may also be performed by a bitrate controller. The bitrate controller may be found in a camera and a network video recorder.