Transcoding is the direct digital-to-digital conversion of one encoding to another, such as for video data files, audio files (e.g., MP3, WAV), or character encoding (e.g., UTF-8, ISO/IEC 8859). This is usually done in cases where a target device (or workflow) does not support the format or has limited storage capacity that mandates a reduced file size, or to convert incompatible or obsolete data to a better-supported or modern format.
In the analog video world, transcoding can be performed just while files are being searched, as well as for presentation. For example, Cineon and DPX files have been widely used as a common format for digital cinema, but the data size of a two-hour movie is about 8 terabytes (TB). That large size can increase the cost and difficulty of handling movie files. However, transcoding into a JPEG2000 lossless format has better data compression performance than other lossless coding technologies; in many cases, JPEG2000 can compress images to half their original size.
