LiveTV MP4 container as input

Since Plex transcodes my TV stream to the MP4 container, I figured I’d make TVHeadEnd output the MP4 format so no further transcoding by plex is required.

Unfortunately, when I select the MP4 as output, Plex fails to tune into the channel, as soon as I switch back to MPEG-TS it works again.

Is there a specific reason why Plex doesnt support MP4 as input?

Maybe your server isn’t powerful enough?
What’s the specs and resolution of the channel?

mp4 is just a container, most TV signals come as mpegts natively. So some device needs to transcode the mpegts stream, in this case I guess this would be your plex server (or is it the tvheadend server?). So I agree with @Auss1e that low power might be the issue.