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bbcZara Olver, 21, her 48-year-old mother Carole, and sisters Serenza Olver, 29, and Danielle Olver, 19, all admitted child cruelty at Plymouth Crown Court.
In the footage, a boy in a nappy was called a "wimp" for not hitting his sister back after she struck him.
The women laughed as the children hit each other with brushes and magazines.
But the footage was found by chance by the toddlers' father, on leave from the army, and he told social services.
Anyone watching this footage... would have been sickened and saddened
Det Sgt Barry Walters
The boy, aged two, is seen crying after being punched in the face by his three-year-old sister and is told by one of the four women in the room "not to be a wimp or a faggot" and to hit the girl back.