In my experience it is far more efficient to transcode very high resolution files (4k or even 1080p) locally, and then upload a real deliverable (at much greater speed now that it has been compressed).
In my experience it is far more efficient to transcode very high resolution files (4k or even 1080p) locally, and then upload a real deliverable (at much greater speed now that it has been compressed).
As a short answer, though, we're actually quite cheap for most customers. Major internet publishers use Zencoder for a few hundred dollars/month. Large-volume providers use us for less than the cost of a full-time engineer - and the alternative to Zencoder at large scale is a team, not a single engineer. Mission-critical encoding requires a lot of engineering and operations, even when starting from the excellent open-source libraries available.
Beyond that, we generally do things faster, more reliably, and at higher quality than "default" encoding systems, especially around the edges. That's what happens when you throw >10,000 hours of engineering at this problem. Again, get in touch if you want specifics.
To a certain extent, this is an apples and oranges comparison, but the service model really seems to fit precisely with video encoding (or I wouldn't be here).