Streaming has become the heartbeat of digital entertainment, and video transcoding is the engine that keeps it running smoothly. Whether you are watching a live sports event in the UAE or binge-watching short-form videos in India, transcoding ensures seamless playback across devices. In 2025, advancements in this technology are redefining how content reaches audiences.
What is Video Transcoding and Why Does It Matter?
Video transcoding converts video files from one format to another, ensuring compatibility across devices, networks, and platforms. It adjusts bitrates, resolutions, and codecs to optimize playback while maintaining quality. This process is critical for delivering low-latency streams, especially for mobile-first audiences who demand instant, high-quality content.
According to the report by Next Move Strategy Consulting, the global Video Transcoding Market size is predicted to reach USD 14.05 billion by 2030 with a CAGR of 11% from 2025-2030.
Transcoding addresses challenges like:
- Device diversity: Ensures videos play smoothly on smartphones, PCs, and smart TVs.
- Bandwidth constraints: Optimizes file sizes for users with varying internet speeds.
- Scalability: Supports high-traffic events without performance drops.
- Latency: Reduces delays for real-time experiences like live sports or concerts.
Video transcoding ensures compatibility and quality across diverse devices and networks, making it essential for modern streaming platforms.
Tencent Cloud’s Role in Next-Gen Streaming
Tencent Cloud, a global leader in cloud solutions, announced in May 2025, it’s partnership with C.live, a UAE-based live streaming platform, to enhance event broadcasting. This collaboration leverages Tencent Cloud’s Streaming Services (CSS) and Media Processing Service (MPS) to deliver low-latency, scalable streaming for sports, concerts, and conferences.
Key Features of Tencent Cloud’s Solutions
- Low-Latency Broadcasting: CSS provides end-to-end audio and video capabilities, ensuring uninterrupted live streams.
- Advanced Processing: MPS supports transcoding into multiple formats, bitrates, and resolutions, with features like watermarking and smart editing.
- Scalability: Handles high-traffic events without compromising performance.
- Real-Time Analytics: Offers insights into audience engagement, optimizing viewer experiences.
C.live has seen transformative results, with improved stability during high-traffic broadcasts and enhanced viewer engagement through real-time interactions. According to Nazim Musthafa Mohammed, C.live’s General Manager, Tencent Cloud’s solutions deliver “seamless, high-quality video streaming with minimal latency”.
ZEE5’s In-House Transcoder: A Game-Changer for Vertical Video
ZEE5, an Indian streaming platform, unveiled its in-house transcoder optimized for vertical video (9:16 aspect ratio) on April 10, 2025, on Google Cloud Platform. This innovation addresses the rising demand for short-form content, particularly among mobile-first audiences in India.
Key Achievements of ZEE5’s Transcoder
- Performance Boost: Reduced video start times by 20% and file sizes by 10-15%, easing network strain without quality loss.
- Cost Efficiency: Cut transcoding costs by 92%, enabling reinvestment in content creation.
- Autonomy: In-house development allows ZEE5 to customize features and future-proof its infrastructure.
Suneel Khare, Senior Vice President at ZEE Entertainment Enterprises, noted, “Faster load times, reduced buffering, and seamless playback directly enhance the viewer experience”.
Impact on the Video Transcoding Market
The innovations from Tencent Cloud and ZEE5 are reshaping the video transcoding market in 2025. These advancements highlight key trends:
- Shift to Cloud-Native Solutions: ZEE5’s Google Cloud-based transcoder and Tencent Cloud’s CSS/MPS demonstrate the industry’s move toward scalable, cloud-driven infrastructure.
- Cost Optimization: ZEE5’s 92% cost reduction underscores the financial benefits of in-house or tailored transcoding solutions, encouraging platforms to rethink third-party dependencies.
- Focus on Mobile-First Formats: The emphasis on vertical video and low-latency streaming reflects growing consumer demand for mobile-optimized content.
- Regional Growth: The UAE and India are emerging as key markets for transcoding innovation, driven by high mobile penetration and live event streaming.
These developments signal a competitive market where efficiency, scalability, and user experience are paramount. Platforms that invest in custom transcoding solutions are likely to gain a strategic edge.
Comparing Tencent Cloud and ZEE5’s Approaches
| Feature | Tencent Cloud (C.live) | ZEE5 |
| Platform | Cloud-based CSS and MPS | In-house transcoder on Google Cloud |
| Key Focus | Live streaming for events | Vertical video for short- form content |
| Latency Reduction | Minimal latency for real- time interactions | 20% faster video start times |
| Cost Savings | Not specified | 92% reduction in transcoding costs |
| Scalability | High-traffic event support | Handles large-scale vertical content |
| Analytics | Real-time audience insights | Not mentioned |
| Customization | Advanced features like watermarking, smart editing | Full control for future- proofing |
Next Steps for Businesses and Platforms
To leverage the latest transcoding advancements, consider these actionable takeaways:
- Evaluate Cloud vs. In-House Solutions: Assess whether third-party services like Tencent Cloud or in-house development like ZEE5 better suit your platform’s needs.
- Prioritize Mobile Optimization: Invest in transcoding for vertical video and low-latency streaming to cater to mobile-first audiences.
- Focus on Cost Efficiency: Explore cloud-native tools to reduce transcoding costs while maintaining quality.
- Incorporate Analytics: Use real-time insights to optimize viewer engagement and content delivery.
- Test Scalability: Ensure your transcoding infrastructure can handle peak traffic during live events or high-demand periods.
Conclusion
Video transcoding is at the heart of the streaming revolution, enabling platforms to deliver high-quality content efficiently. Tencent Cloud’s partnership with C.live and ZEE5’s in-house transcoder showcase how innovation is addressing latency, cost, and scalability challenges. As the market evolves, platforms that prioritize mobile-first formats and cloud-native solutions will lead the way. By adopting these technologies, businesses can enhance viewer experiences and stay ahead in the competitive streaming landscape.
About the Author
Nitrishna Sonowal is a skilled SEO Executive and Content Writer with over 3 years of experience in the digital marketing industry. With a deep understanding of the ever-evolving digital landscape, she blends analytical insights with creative storytelling to deliver impactful digital solutions. She creates content that resonates with both clients and readers alike. Outside of work, she enjoys dancing, baking, and travelling to new places. The author can be reached at info@nextmsc.com.