Video encoding is the process of compressing video files to reduce size and improve distribution efficiency. Modern video codecs (H.264, H.265, VP9, AV1) use sophisticated algorithms to remove redundancy while preserving visual quality. Encoding skill encompasses understanding codec trade-offs, bitrate selection, quality metrics, and optimizing transcoding pipelines. Video encoding powers streaming services (Netflix, YouTube, TikTok). Engineers optimize encoding to balance quality, file size, encoding speed, and device compatibility. A 1-minute improvement in encoding time across billions of videos saves millions in infrastructure costs.