A Digital Living Network Alliance (DLNA) system and method transform multimedia contents in a manner adaptive to the available data processing capability of the digital media renderer (DMR) of the DLNA network. A digital media server (DMS) and a digital media renderer (DMR) are discovered. A list of contents provided by the DMS is obtained. Information on a transport protocol and a data format of the DMR is obtained. Information on available data processing capability of the DMR is obtained. The transport protocol and the data format of the DMS are matched to those of the DMR. Transcoding and transrating schemes of the DMS are adjusted based on the available data processing capability of the DMR. A connection between the DMS and the DMR is established, and content stored in the DMS is transmitted to the DMR.