Video Encoding and Video Codecs: A Beginner’s Guide

Video content is everywhere, from YouTube and Twitch streams to online courses and business webinars. Yet many creators and developers struggle with large file sizes, buffering issues, and compatibility problems. If you are looking for a video encoding solution, this guide explains everything in simple terms.

What is Video Encoding

Simply put, video encoding is the process of intelligently compressing massive, raw video data into a smaller format suitable for efficient storage, sharing, and smooth streaming.

Raw video files contain an overwhelming amount of data; without encoding, even a short 4K recording could consume several gigabytes of storage, making it nearly impossible to upload or archive. When you encode a video, modern codecs remove redundant information while preserving visual quality. This drastic reduction in file size directly lowers your storage costs and bandwidth usage, ensuring your videos can look nearly identical to the original recording while using only a fraction of the data to deliver a buffer-free viewing experience across different devices.

Many beginners confuse encoding with decoding and transcoding, here is a simple way to distinguish between them:

In other words, encoding and decoding video are opposite sides of the same process. Your camera, encoder, or streaming software creates the file, while your phone, browser, or smart TV decodes it for playback.

Common Video Codecs

A codec stands for "coder-decoder." It determines how video data is compressed and decompressed. When discussing Video Codecs and Encoding, the codec is often the most important decision.

Cisco notes that H.264 became widely adopted because it can deliver similar quality at roughly half the bitrate of older codecs such as MPEG-2 and H.263. H.265 further improves compression efficiency for high-resolution content.

H.264 (AVC)

H.264, also known as Advanced Video Coding (AVC), remains the most widely used and supported video codec today.

Advantages:

• Excellent compatibility
• Fast encoding
• Supported by nearly all devices
• Ideal for live streaming

Best use cases:

• YouTube videos
• Live streams
• Video conferencing
• Online courses

H.265 (HEVC)

H.265, commonly known as High Efficiency Video Coding (HEVC), was designed to improve compression efficiency beyond what H.264 can achieve.

Advantages:

• Smaller files than H.264
• Better for 4K and HDR
• Lower bandwidth requirements

Trade-offs:

• More processing power required
• Licensing considerations
• Not universally supported

Industry comparisons commonly report approximately 40–50% bitrate savings versus H.264 at similar visual quality.

AV1

AV1 is a newer, royalty-free video codec developed to meet the growing demands of modern streaming platforms. Designed to deliver high-quality video at lower bitrates, AV1 has gained significant attention from major technology companies and streaming services.

Advantages:

• Excellent compression efficiency
• Lower bandwidth consumption
• Growing industry adoption

Challenges:

• Slower encoding
• Higher processing demands
• Some older devices lack support

Research and industry testing have shown AV1 can deliver roughly 30–50% better compression efficiency than H.264 at similar quality levels.

VP9

VP9 is an open-source, royalty-free video codec developed by Google as the successor to VP8. It was designed to enable high-quality video streaming at significantly lower bitrates, paving the way for the widespread adoption of 4K content on the web.

Advantages:

• Free from licensing fees and royalties
• Excellent performance for high-resolution web streaming
• Native support in almost all modern web browsers

Industry Note: Google utilizes VP9 extensively to stream high-definition and 4K videos on YouTube, as it provides roughly the same compression efficiency as H.265 (HEVC) without the expensive licensing costs.

Choosing the Best Video Encoder and Video Encoding Setting

The best video encoder depends on your specific needs. If you prioritize speed and reliability for live streaming, a hardware encoder may be the better choice. If you want maximum control over quality and compression settings, a software encoder is often the preferred option.

Hardware Video Encoders

Hardware video encoders use dedicated chips or standalone devices to process video. Since the encoding work is handled separately from your computer's main processor, they deliver faster performance, reduce CPU usage, and provide stable operation during live broadcasts. Popular examples include OBSBOT Talent, NVIDIA NVENC, Intel Quick Sync, and AMD Video Encoder.

Software Video Encoders

Software video encoders rely on your computer's CPU to compress video. While they typically require more processing power, they offer greater flexibility, more advanced settings, and finer control over image quality. Common software encoders include x264, x265, and SVT-AV1.

How Bitrate Impacts Quality

Bitrate determines how much data is allocated to your video every second, making it one of the most important encoding settings. If the bitrate is too low, viewers may notice pixelation, blurry motion, and compression artifacts. If the bitrate is too high, file sizes become larger, uploads take longer, and bandwidth requirements increase. In many cases, finding the right bitrate balance has a greater impact on viewing quality than simply choosing the newest codec.

Recommended Starting Points

These values vary depending on motion, content complexity, and codec efficiency.

Solving Common Video Encoding Problems

Even with the right codec and encoder, video encoding issues can still occur. Understanding the most common problems and their solutions can help you maintain smooth playback, efficient streaming, and consistent video quality.

Problem 1: "Encoded in AV1 Format Which Isn't Supported"

A growing number of users encounter errors when trying to play a file that is encoded in AV1 format on devices that lack AV1 decoding support. Although AV1 adoption continues to expand, compatibility can still be inconsistent on older hardware and software platforms.

Solution:

Start by updating your media player, graphics drivers, or operating system. If the issue persists, convert the file to a more widely supported codec such as H.264, install AV1 decoding support if available, or use a newer browser or playback device that supports AV1.

Problem 2: Large File Sizes

Large video files consume significant storage space, take longer to upload, and require more bandwidth to distribute.

Solution:

To reduce file size, consider switching from H.264 to the more efficient H.265 codec or using AV1 when supported. Lowering the bitrate or reducing the output resolution can also help shrink file sizes while maintaining acceptable visual quality.

Problem 3: Buffering During Streaming

Buffering often occurs when the video stream requires more bandwidth than the network can consistently provide. Excessively high bitrates, slow upload speeds, and incorrect encoder settings are common causes.

Solution:

Reduce the streaming bitrate to match your available upload speed and review your encoder configuration. Adaptive bitrate streaming can also improve viewer experience by automatically delivering different quality levels based on network conditions, helping minimize interruptions and playback stalls.

Problem 4: Poor Video Quality

Videos may appear blurry, pixelated, or filled with compression artifacts, especially when the source footage or encoding settings are not optimized.

Solution:

Before increasing the bitrate, check the quality of your source footage, camera settings, frame rate, and encoder preset. A well-recorded source video provides the foundation for a high-quality output, as encoding alone cannot fully correct poor footage.

FAQs About Video Encoding

What is VVC (H.266), and should I use it?

VVC is the next-generation successor to H.265, offering 30–50% better compression for 8K and VR. However, because hardware support is still extremely limited, you should stick to H.264 or H.265 for now.

What is the difference between video encoding and transcoding?

Encoding creates the initial compressed file, while transcoding converts an already encoded file into a different format.

Should I use hardware or software encoding?

Hardware encoding is typically better for live streaming, while software encoding may provide greater quality control for recorded content.

Conclusion

Understanding video codecs and video encoding helps you make smarter decisions about quality, storage, bandwidth, and compatibility. When you are selecting video encoders, comparing coding formats, learning about encoding and decoding video, or troubleshooting an encoded video that won't play correctly, the right codec and settings can dramatically improve your workflow. For most users, H.264 remains the safest option, while H.265 and AV1 offer greater efficiency when supported. So, by balancing codec choice, bitrate, and hardware capabilities, you can achieve better video quality without wasting storage or bandwidth.