Transcoding video to an external player.

[grheard]

Sorry if this has been covered, but I couldn't find it in a search.

What I have found in the forum search is that video can be played to an external player, but it appears that the file is fed directly with no bit rate transcoding. Correct or not?

Anyway the crux of what I'm asking is... can video be played to an external player while at the same time being transcoded to a lower bit rate like music?

No video transcoding is fine for my internal network, but is not a possibility when I'm away from home.

Thanks for any and all recommendations.