Method and apparatus for processing video and graphics data to create a composite output image having independent and separate layers of video and graphics display planes

A method, apparatus, system and machine-readable medium for generating a composite output image based upon multiple input images. In certain embodiments, a plurality of input graphics images are iteratively blended in real time to provide a blended graphics image, which is then composited with other layers such as an input video image. The composite output image may then be provided to a display device. Iterative blending of the plurality of graphics images may include scaling, format conversion, and color space conversion, and may be performed based on priority information received for the graphics images from content sources. Compositing may include an alpha blending based on alpha values for pixels of the images.