In this research work, a new application layer multicast algorithm using distributed service architecture and scalable video coding is proposed for scalable video conferencing services. The proposed algorithm considers the limitations of the human perception while participating in a video conference so as to minimize traffic that is not necessary for the communication session. A theoretical analysis was conducted to compare the total waiting time between a centralized and a distributed queues. The result shows that distributed service architecture can, by applying the newly proposed multicast algorithm provide a much smaller delay than the centralized service architecture.