This isn't something we have intention to do — we have opted to make the right decisions to provide the most efficient streaming experience in a very complicated series of situations which would be beyond the realm of what we could easily solve with a rules-based system.
Is this for a Recording or Live TV? Is this for an h.264 source? This shouldn't (and usually doesn't) happen. There must be something specific happening if it is not.
I'm not completely sure what you're saying, but if I understand it correctly, this already happens.
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When viewing from the Channels app if you have Quality set to Original, transcoding does not happen.
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When viewing from a web browser if you have an h.264 encoding (that is HLS-compliant) with a bitrate equal or lower than the requested bitrate, transcoding does not happen.
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When viewing from the Channels app if you have any h.264 encoding with a bitrate equal or lower than the requested bitrate (when not set to Original), transcoding does not happen.
We do not support transcoding to mpeg2 because it is not supported by the HLS RFC and does not have hardware encoding on the majority (and maybe all) the platforms we support.
We have future plans to support transcoding to h.265 but don't have a timeline for when that will happen. It will require infrastructure on both the server and client to make this happen seamlessly across the range of versions and platforms we support.
Because we don't support transcoding to mpeg2 or h.265, we must transcode those formats to be able to provide Adaptive Bitrate streaming — our player cannot seamlessly handle the codec changing on the fly when switching from one bitrate to another.
We have decided that Adaptive Bitrate streaming is much more important for the seamless experience of our customer base vs not transcoding original content. If a user specifically does not want transcoding, they can set the Quality to Original to opt out of transcoding and the Adaptive Bitrate streaming.