Inter-format Transcoding Support : There is no single dominant compression technology for all applications / markets / scenarios. Some formats were adopted as they were simply the best available at the time as in case of H263 for video conferencing and MPEG2 for broadcast digital and DVD. The newer compression standards MPEG4 and H264 achieve much higher quality/compression ratios. The real-time conversion from encoded bit-streams in older standards to newer standard encoded bit-streams permits a more efficient storage and redistribution of media content. It supports MPEG-2 to H.264, H.263+ to H.264 transcoding and vice-versa.

Intra-format Transcoding Support : Modification of the characteristics of an encoded bit-stream without changing the format. The resultant encoded stream may have different characteristics, in that the video has different resolution, frame rate, bit rate, compression factor (quantization level) etc. Media content is distributed at pre determined bit rate determined by the limitations of the transmission medium.