The system is a distributed video transcoding system that allows content to be transformed from one digital format to another close to the ingest and delivery points to minimize the time and cost of the transfer between end points. Additionally by making transcoding an integral part of the distribution of content itself, significant efficiencies can be gained. The distribution can be improved by transcoding at different phases of the transfer. Within the system decisions can be made to utilize different transcoding resources based on various business rules and priorities.