Pausing live tv

Does pausing live tv record/save to the server or streaming device?

Local streaming device

Why doesn’t it record to the server? I have an ATV and feel like that could degrade onboard storage.

Thanks, there’s a way, just don’t know about the transcoding, may tax server.
So does lowering remote viewing quality transcode on the fly?

Any setting but “original” will require transcoding of some kind by the server.

Maybe "processing" would be more accurate. If your resolution and bitrate are high enough, the server may just remux the feed rather than transcode it.

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If we used the DVR for buffering live TV, would it fix the issue on Apple TV where if you switch out of the Channels app to say Settings then immediately back, it would maintain the live TV buffer on that channel? Using the Apple TV currently, if I leave the app for even just a second, the buffer is gone.