Yes, this is definitly the issue!
Is the PS4 not strong enough to transcode it by itself?
Its local .... why there is any need for transcoding?
I bough PLEX only for Watching movies on PS4, but if its not working i will cancel my PLEX Pass.
And why this is working on other devices, like Laptop (PLEX WEB) or Smartphone (PLEX for Android)
The movies also wont play in the PS4 Webbrowser. (it only gernerates a high CPU load on my NAS too)
Hope there can be a solution found ... a PS4 APP that can play the movies direct/local, without need for transcoding from the Server (like dlna).
No its not built to transcode stuff it can direct play mp4 files tho the faq for ps4 tells what it can direct play. The laptop has codec support the cpu and gpu do the decoding so thats why it will play any format where the ps4 has limited codec support from sony. Same with the android it has some kind of codec support lets it play certain videos and when things need to be transcoded the bitrate is alot smaller on a phone compared to the ps4. This is a issue with sony not providing more file support to the ps4 not plex they want it to be know more for gaming then anything else it seems like but time will tell what support it gets down the road.