What is the difference between CBR and VBR encoding?

Constant bit rate (CBR) encoding persists the set data rate to your setting over the whole video clip. Use CBR only if your clip contains a similar motion level across the entire duration.  CBR is most commonly used for streaming video content using the Flash Media Server (rtmp)
Variable bit rate (VBR) encoding adjusts the data rate down and to the upper limit you set, based on the data required by the compressor. VBR takes longer to encode but produces the most favorable results.  VBR is most commonly used for http delivery if video content (http progressive)
We recommend you do not use CBR unless you have a specific need for playback on a device that only supports CBR. Our default VRB mode will produce higher quality  at competitive bitrates.

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of encoding each month and test the difference between CBR and VBR on your own.  When you are using Encoding.com you can chose CBR or VBR in each of your encoding jobs within the API, web interface, or watch folder

In the web interface or watch folder after you specify your source video location, click the “Customize” button and expand the “Video Settings” menu and select CBR to “no” or “yes” 

When using the Encoding.com API set the <cbr>no<cbr/> or <cbr>yes<cbr/> in the <format> section of your API calls.
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