Abstract: A transcoder system for compressed digital video bitstreams comprising three frame types: I-frames, P-frames and B-frames. The system includes a picture reader decoder to ascertain the type of each frame prior to transcoding. The system also includes a T2 transcoder for processing I-frames and P-frames, possibly excepting the last P-frame of a group-of-frames (GOP), a T1 transcoder for processing B-frames and (optionally) the last P-frame of a GOP and a picture decision block for separating all frames into I-frames and P-frames, possibly excepting the last P-frame of a GOP for processing by the T2 transcoder and B-frames and (optionally) the last P-frame of a GOP for processing by said T1 transcoder.