I have been waiting for something like this for quite a while and it appears Google has made picture-in-picture a reality when using their Google Chrome web browser. If you use the Google Chrome browser, Picture-in-Picture (PiP) allows you to watch videos in a floating window (always on top of other windows) so you can keep an eye on what you’re watching while interacting with other sites, or applications. For example, I can watch CBS News live, in a small window, while exploring other web sites.
To make this work, you will need to install the Picture-in-Picture browser extension from the Google Chrome Store. Once installed you will see the icon for Picture-in-Picture on the toolbar. Visit a site, such as YouTube, start a video, then click on the Picture-in-Picture icon and watch the magic happen.
Below is a video to give you a visual on how this works… — Rick @ What’s On My PC
Source: Picture-in-Picture (by Google)