A transcoding capability configuration method that includes: separately obtaining capability information reported by at least two terminals, where the capability information includes first transcoding capability data and a service type of a service executed by the at least two terminals, and the at least two terminals belong to a same service group; determining, based on the first transcoding capability data and the service type of each of the at least two terminals, second transcoding capability data satisfying the at least two terminals; and sending the second transcoding capability data to each of the at least two terminals, so that each terminal configures a transcoding parameter based on the second transcoding capability data.