AWS introduces Elastic Transcoder
aws.amazon.com
aws.amazon.com
HD @zencoder: $0.10 per minute HD @AET: $0.03 per minute
The target format is also really important. WebM is around twice as slow to encode than h264 for the same resolution. And HD doubles the encoding time as well.
Now if you look at the Spot instance market, you can have a c1.xlarge for $0.07 / hour. Given that you can encode ~6 h264 SD videos in near real-time on that instance, it would cost you ~0.0002 / minute of video (if you don't need other infrastructure services). This is the bottom-line.
FFMPEG is great for personal use but unlikely to be used in production systems.
1. Its not "enterprisy". By that mean there is company behind the codecs who can provide support 24x7 on quality issues, robustness, warrenties etc.. 2. The ugly word - Patent covered. A lot of video technology has licensing and patenting. The moment sometime as big as Amazon tries to use a codec, the sharks will line up unless they have the right license.
FFmpeg is used by Youtube, Vimeo, ZenCoder, Transload-it and PandaStream (where I'm working at) to transform the videos. Hardware encoders are great for a specific target but FFmpeg just supports most the rubbish video formats that customers like to throw at us.
Edit: at those rates, streaming to 1000 people for an hour would cost you 1800 dollars. I can't see that being worthwhile....
With video transcoding you push batch jobs that can be processed at any time. The video is taken from a S3 bucket and the result is put back in another place. When transforming the video you might use some heuristics on the whole file (because some formats have the metadata at the end). You can also implement fallbacks when the transcoding fails.
With live streaming you need to acquire a streaming video source, transform it in real-time and forward the stream without too much latency and without failure. Then you need to push that stream to the N connected people possibly fanning-out the traffic to multiple servers to dispatch the load.
Amazon already offers live video streaming at a much lower price:
http://aws.amazon.com/cloudfront/faqs/#Does_Amazon_CloudFron...