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When should I use proxy clips vs. the "transcode to editor-friendly format" option? They both seem to accomplish the same goal, that is, providing the video in a format that the editor can more easily use during the editing process. I understand that the proxy clips are usually reduced in quality while the transcoded clips are not. But the transcoding process is lossy so you lose information either way (disregarding lossless transcoding which results in massive files). Thus I don't see a clear reason to use one over the other. What am I missing?

The Bic Pen
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Proxy clips are low-resolution versions of the original video files, which can be used for editing to improve performance and speed up the process. On the other hand, transcoding involves converting the original video files into a format that is optimized for editing.

While proxy clips are quicker to create and easier to manage, they may not provide the best image quality and may not accurately represent the final product. Additionally, if the original video files have a lower resolution or quality, creating proxy clips may not be helpful in improving editing performance.

Transcoding, on the other hand, may take longer to process and require more storage space, but it ensures that the footage being edited is of the highest quality and accurately represents the final product. This can be especially important for professional projects or those with specific image quality requirements.

Ultimately, the choice between using proxy clips and transcoding to an editor-friendly format depends on the specific needs of the project, the quality of the original footage, and the resources available to the user.

In short transcoding is for the Quality. And proxy clips are for the efficiency.