Rog889, transcoding is set within the Channels application. Each Channels app install has it’s own settings as to which tuners are used in what priority and what transcoding is used for each tuner.
This allows for a lot of flexibility. I do the following:
Wired Appletvs - no transcoding
iOS devices - mobile transcoding
Channels DVR - heavy transcoding
The Extend works great with Channels.