I work with live transcode, and it can be beneficial to run on g2 instances. Running c4.4xlarge I can transcode a good number of 1080@30 in with 1080/720/480/360/240@30 out. With a proper g2 instance I can transcode more simultaneously.
So cost efficiency really depends on sustained traffic levels. I scale out currently using haproxy and custom code that monitors my pool and scales appropriately. But I monitor sustained traffic levels to know when it makes financial sense to scale up.
If your main concern is transcode speed, CPU is likely sufficient -- I am unable to transcode faster than real time with live transcode.
Well, yeah. Maybe quantum computing will change that one day!
What is it you're working on? Colour me intrigued.
All in all, I look for somewhere around 0.25s to complete the rest of the work and deliver the segment to CDN.