Transcoding on demand is just trading compute for storage. If you have infinite storage you can store all definitions in advance for any possible client (I think that's what Netflix does); but if you don't, transcoding on demand is fine and isn't that much slower (a bit janky, yes, but only a bit).

I think most people would find that two or three definition is all they really need. 1080p h264 at high bit rate for compatibility on the local network and low bit rate 1080p for streaming remotely or to save space in local downloads for a trip.

But since you don't have an infinite number of clients, just a few, there is no need for infinite storage

> Transcoding on demand is just trading compute for storage.

And storage is getting expensive AF.