---
title: "What Is Video Encoding? Definition and Examples | RentAnOTT"
description: "Video encoding compresses raw video with a codec so it can be stored and streamed. See the settings that matter and how encoding differs from transcoding."
url: "https://www.rentanott.com/glossary/video-encoding"
markdown_url: "https://www.rentanott.com/glossary/video-encoding.md"
category: "Streaming technology"
updated: "2026-10-05"
---

# What is video encoding?

Video encoding is compressing video with a codec, such as H.264, H.265 or AV1, so that it is small enough to store and stream. It removes detail the eye will not miss and describes each frame by how it differs from its neighbors.

## How video encoding works

Uncompressed video is enormous: a single hour of 1080p runs to hundreds of gigabytes. An encoder shrinks it by a factor of a hundred or more using two ideas. Within a frame, it simplifies areas of similar color. Between frames, it stores only what changed, since most of a picture is the same from one frame to the next.

Periodically it stores a complete frame, called a keyframe, so that playback can start or switch quality at that point.

## The settings that matter

- Codec: H.264 for universal compatibility, H.265 or AV1 for smaller files on newer devices
- Resolution and frame rate
- Bitrate, or a quality target that lets bitrate vary
- Keyframe interval, usually two seconds for streaming so segments align
- Preset: slower encoding gives better quality for the same size
- Audio codec and bitrate, normally AAC

## Encoding vs transcoding

Strictly, encoding turns uncompressed video into a compressed format, and transcoding converts one compressed format into another. Since the files uploaded to a streaming platform are already compressed, what the platform does is transcoding. In everyday use the two words are interchangeable.

## Encoding for streaming

A streaming service does not encode a title once but several times, into a ladder of resolutions and bitrates for adaptive playback. Upload the highest quality source you have: each rendition is made from it, and quality lost in the source cannot be recovered.

## Video encoding on RentAnOTT

Encoding and playback up to 4K are part of RentAnOTT: up to 1080p on Launch, up to 4K on Growth and Scale. Encoding is billed per minute, at a higher rate for 4K. [Try the bitrate calculator](https://www.rentanott.com/tools/video-bitrate-calculator).

## Related terms

- [Transcoding](https://www.rentanott.com/glossary/transcoding) — Transcoding is converting a video from one encoded format into another. On a streaming platform it means taking an uploaded file or a live feed and producing the several resolutions and bitrates needed for adaptive playback on every device.
- [Codec](https://www.rentanott.com/glossary/codec) — A codec is the algorithm used to compress video or audio for storage and delivery and to decompress it for playback. The name combines coder and decoder. The choice of codec determines how small a file is at a given quality and which devices can play it.
- [Bitrate](https://www.rentanott.com/glossary/bitrate) — Bitrate is the amount of data used to represent one second of video or audio, measured in kilobits or megabits per second (kbps or Mbps). A higher bitrate carries more detail and produces larger files and higher delivery costs.
- [H.264](https://www.rentanott.com/glossary/h264) — H.264, also called AVC (Advanced Video Coding), is the most widely supported video compression standard. Finalized in 2003, it plays on practically every phone, computer, television and browser in use, which makes it the baseline codec for streaming.
- [H.265](https://www.rentanott.com/glossary/h265) — H.265, also called HEVC (High Efficiency Video Coding), is the successor to H.264. It delivers the same picture quality at roughly 40% to 50% lower bitrate and is the standard codec for 4K and HDR streaming.
- [AV1](https://www.rentanott.com/glossary/av1) — AV1 (AOMedia Video 1) is an open, royalty-free video codec released in 2018 by the Alliance for Open Media, a group that includes major browser, chip and streaming companies. It compresses roughly 30% more efficiently than H.265 and about 50% more than H.264.
- [Bitrate ladder](https://www.rentanott.com/glossary/bitrate-ladder) — A bitrate ladder, or encoding ladder, is the list of versions a video is encoded into for adaptive streaming. Each rung pairs a resolution with a bitrate, and the player moves up and down the rungs as the viewer's connection changes.
- [Adaptive bitrate streaming](https://www.rentanott.com/glossary/adaptive-bitrate-streaming) — Adaptive bitrate streaming (ABR) is a delivery method in which a video is encoded at several quality levels and the player switches between them during playback, choosing the highest quality the viewer's connection can sustain without stalling.

## Further reading

- [Pricing](https://www.rentanott.com/pricing)
- [Matroska vs MP4](https://www.rentanott.com/blogs/matroska-vs-mp4)
- [2K video resolution explained](https://www.rentanott.com/blogs/2k-video-resolution)

## Frequently asked questions

### What format should I upload to a streaming platform?

A high-bitrate master in a common format, such as H.264 or ProRes in an MP4 or MOV container, at the original resolution and frame rate. The platform creates the streaming versions from it.

### Which codec should a streaming service use?

H.264 as the baseline, because every device plays it. Add H.265 or AV1 for 4K and for audiences on newer devices, where the saving in delivery cost justifies the extra encoding.

### Does encoding reduce quality?

Streaming codecs are lossy, so some information is discarded. Done well, the loss is not visible at normal viewing distance.

All 163 terms: [Streaming and OTT glossary](https://www.rentanott.com/glossary).

## Book a demo

Tell RentAnOTT what you are launching. The team walks through the platform and maps the path to go-live around your catalog, markets and revenue model.

Book a demo: https://www.rentanott.com/contact

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- [Insights](https://www.rentanott.com/blogs.md) — All streaming business articles
- [Glossary](https://www.rentanott.com/glossary.md) — Definitions of streaming and OTT terms
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