In this paper, we propose a subcarrier resource allocation algorithm for managing the video quality degradation for multiuser orthogonal frequency division multiplex (OFDM) systems. The proposed algorithm exploits the unequal importance existing in different picture types for video coding and the diversity of subcarriers for multiuser systems. A model-based performance metric is first derived considering the error concealment and error propagation properties of the H.264 video coding structure. Based on the information on video quality enhancement existing in a packet to be transmitted, we propose the distortion management algorithm for balancing the subcarriers and power usages for each user and minimizing the overall video quality degradation. In the simulation results, the proposed algorithm demonstrates a more gradual video quality degradation for different numbers of users compared with other resource allocation schemes.