The important new revenue opportunities that multimedia services offer to network and service providers come with important management challenges. For providers, it is important to control the video quality that is offered and perceived by the user, typically known as the Quality of Experience (QoE). Both admission control and scalable video coding techniques can control the QoE by blocking connections or adapting the video rate but influence each other's performance. In this article, we propose an in-network video rate adaptation mechanism that enables a provider to define a policy on how the video rate adaptation should be performed to maximize the provider's objective (e.g., a maximization of revenue or QoE). We discuss the need for a close interaction of the video rate adaptation algorithm with a measurement based admission control system, allowing to effectively orchestrate both algorithms and timely switch from video rate adaptation to the blocking of connections. We propose two different rate adaptation decision algorithms that calculate which videos need to be adapted: an optimal one in terms of the provider's policy and a heuristic based on the utility of each connection. Through an extensive performance evaluation, we show the impact of both algorithms on the rate adaptation, network utilisation and the stability of the video rate adaptation. We show that both algorithms outperform other configurations with at least 10%. Moreover, we show that the proposed heuristic is about 500 times faster than the optimal algorithm and experiences only a performance drop of approximately 2%, given the investigated video delivery scenario.