This paper presents a new selective and scalable encryption (SSE) method for intra dyadic scalable coding framework based on wavelet/subband (DWTSB) for H.264/AVC. It has been achieved through the scrambling of quantized transform coefficients (QTCs) in all the subbands of DWTSB. To make the encryption scalable, it takes advantage of the prior knowledge of the frequencies which are dominant in different high frequency (HF) subbands, as traditional zigzag scan is not that efficient for them. Thus, by scrambling the scan order of QTCs in the intra scalable coding framework of H.264/AVC, we were able to get encryption and compression for enhancement layers (ELs) simultaneously. Watermarking has been integrated in the proposed architecture to avoid the requirement of separate keys for each spatial layer. The algorithm is better suited for multimedia streaming as the bitrate of the encrypted bitstream is lower than the original bitrate. Besides offering SSE, the proposed algorithm, when applied to different benchmark video sequences, outperformed the standard zigzag scan in terms of bitrate.