I have installed Media module (7.x-2.0-beta2), but I can't find the module or setting for editing images that is in the video Drupal 7: Media Upload with Image Editing.
I want to set up the Media module for editing images as per this video.
Image editor in the media module
Take a look at the article "Crop, rotate, and scale embedded images".
You have to install Media crop module. Some details about this module (from its project page):
Adds cropping, rotating and scaling to the media module's image embed function. Only available for images local to the server (not for remote images), and only when adding media via CKeditor.
