Transcoder. It resides in each surrogate, and is responsible
for dynamically deciding how to encode the video
stream from the video source in the appropriate format,
dimension, and bit rate. Before delivery to the user, the
video stream is further encapsulated into a proper transport
stream. In our implementation, each video is exported as MPEG-2 transport streams, which is the de facto standard
nowadays to deliver digital video and audio streams
over lossy medium.