Their tech blog and tech presentations discuss many of the requirements and steps involved for encoding source media to stream to all the devices that Netflix supports.
The Netflix tech blog: https://netflixtechblog.com/ or https://netflixtechblog.medium.com/
Netflix seems to use AWS CPU+GPU for encoding, whereas YouTube has gone to the expense of producing an ASIC to do much of their encoding.
2015 blog entry about their video encoding pipeline: https://netflixtechblog.com/high-quality-video-encoding-at-s...
2021 presentation of their media encoding pipeline: https://www.infoq.com/presentations/video-encoding-netflix/
An example of their FFmpeg usage - a neural-net video frame downscaler: https://netflixtechblog.com/for-your-eyes-only-improving-net...
Their dynamic optimization encoding framework - allocating more bits for complex scenes and fewer bits for simpler, quieter scenes: https://netflixtechblog.com/dynamic-optimizer-a-perceptual-v... and https://netflixtechblog.com/optimized-shot-based-encodes-now...
Netflix developed an algorithm for determining video quality - VMAF, which helps determine their encoding decisions: https://netflixtechblog.com/toward-a-practical-perceptual-vi..., https://netflixtechblog.com/vmaf-the-journey-continues-44b51..., https://netflixtechblog.com/toward-a-better-quality-metric-f...