I’ll do my best to answer your questions which will likely bring a few more. All perfectly normal.
You’re correct; the transcoder is a multi-capability tool for both performing translations as well as limiting bandwidth utilization by lowering audio/video bitrates.
For those devices which can’t handle a particular video format, it converts (encoding, max device bit rate, and even color space display).
Devices which can’t handle a particular audio format, the audio is converted to best possible which it can play.
Lastly, and usually most CPU intensive, are subtitles. Some devices can handle PGS subtitles while others can’t. Some can’t handle any, even text-based.
The player is largely in control of each playback.
a. Player settings as defined by the user
b. Physical device capabilities as reported by the TV/tablet/phone
PMS takes all the limitations of the player and transport into consideration, maps these against the media selected, at the moment playback is requested and decides the highest level of quality it can provide. (best playback experience)
Currently,
- Plex does down convert HEVC HDR (10-bit) bt2020 -> 1080p SDR (8-bit) bt709.
- You’re correct the extra bit depth is lost due to color space conversion (tone mapping).
- The transcoder does, while downconverting 2160p -> 1080p, reduce bitrate if desired.
- On the local LAN, unless the player requests it (player again in control here), playback will be at full bitrate available for best possible experience.
- When sharing remotely, you, as admin, may assert additional limits on that upload.
After all the limitations are collected, PMS makes one final determination:
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Can it DirectPlay the media file (sent it as is, including the container./extension, without alteration, inclusive of audio/video/subtitles).
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Can the video stream be sent without alteration, inclusive of any subtitle involvement, be sent if the container/extension is changed. This is known as DirectStream.
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If the video needs to be altered; to change encoding (H265->H264, MPEG2 -> H264, etc), HDR -> SDR, burn subtitles into the output video image, This is a full Transcode.
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The audio is secondary If video is unaltered but audio needs conversion, It’s still a “Direct Stream” task. that’s about all we need say there.
Now speaking to your use-case of allowing playback and transcoding of H.265 -> H.265 targets.
Lowering bandwidth required, as you know, discards bits used for quality and crisp edges. How much to throw away is subjective. Only you can make that determination as to what is within your tolerance.
Yes, even though most 2160p H.265 HDR videos off the disk often exceed 100 Mbps spikes, some of that can be omitted without ever noticing unless you have a very large projection home theater capable of it.
The existing Plex transcoder doesn’t support H265 as the target. There is a new transcoder in forum preview now (first forum drop over the weekend). I haven’t had a chance to see what Engineering has given us yet. It might have support for H.265 -> H.265
If given the ability to send 30 Mbps of H.265 versus 30 Mbps of H.264, the choice is obvious. H.265 is a vastly superior codec and provides a much better image quality at the same bitrate.
You spoke of players. I have several AppleTV 4K’s in my home. They are innately capable of transcoding a 2160 HEVC HDR stream onto my 1080p SDR television. It’s flawless. Tone mapping and everything is there. This is very much mainstream and, imho, not a niche.
I hope I addressed everything?