It certainly is possible, and all with the Video Library:

              

               
import processing.video.*;
               
Capture myCapture;
               
Movie myMovie;
               


               
void setup() 
               
{
               
 size(200, 200);
               


               
 // The name of the capture device is dependent on
               
 // the cameras that are currently attached to your 
               
 // computer. To get a list of the 
               
 // choices, uncomment the following line 
               
 // println(Capture.list());
               
 
               
 // To select the camera, replace "Camera Name" 
               
 // in the next line with one from Capture.list()
               
 // myCapture = new Capture(this, width, height, "Camera Name", 30);
               
 
               
 // This code will try to use the camera used
               
 myCapture = new Capture(this, width, height, 30);
               
 myMovie = new Movie(this, "totoro.mov");
               
 myMovie.loop();
               
}
               


               
void captureEvent(Capture myCapture) {
               
 myCapture.read();
               
}
               


               
void draw() {
               
 //image(myCapture, 0, 0);
               
 tint(255, 20);
               
 image(myMovie, mouseX, mouseY);
               
}
               


               
// Called every time a new frame is available to read
               
void movieEvent(Movie m) {
               
 m.read();
               
}
              

Notice that this is a direct combination of two of the example blocks of code:
http://processing.org/reference/libraries/video/Capture.html
http://processing.org/reference/libraries/video/Movie.html
The only real difference is that the image that is captured is never drawn.