A computer - implemented method performed by an encoding system to perform real-time adaptive encoding to produce a segmented media stream that is collectively made up of a plurality of sequential segments having a duration, wherein the segments are each individually requested by a remotely-located media player, the meth od comprising: encoding the sequential segments of the media stream by the encoding system according to at least one encoding parameter that determines a quality of the media stream; receiving, by the encoding system, a request for at least one of the plurality of sequential segments from the remotely-located media player; in response to the request, transmitting one of the sequential segments of the encoded media stream from the encoding system to the remotely-located media player; and adjusting the at least one encoding parameter by the encoding system during encoding of subsequent segments in real time based upon a comparison of a current encoder capacity of the encoding system to a current network capacity of the network and upon a transmit time of the transmitted one of the sequential segments, wherein the comparison is representative of available bandwidth, and wherein the transmit time is the time taken to send the previously transmitted segment, so that the quality of the media stream is adapted in real time based upon both the available bandwidth and the transmit time to send the previously-transmitted segment, wherein the encoding parameter is adjusted such that quality of the media stream is increased when the current network capacity exceeds the current encoder capacity and the transit time is less than 80 % of the duration of the previously transmitted segment, when a buffer of the encoding system is less than about 15% full, and wherein a time since a previous comparison of a current encoder capacity of the encoding system to a current network capacity of the network and a previous determination of transmit time exceeds about five seconds and wherein the encoding parameter is adjusted such that quality of the media stream is decreased when the network capacity is less than the current encoder capacity, the buffer of the encoding system is between about 15% and 30% full and is filling and wherein the time since a previous comparison of a current encoder capacity of the encoding system to a current network capacity of the network and a previous determination of transmit time exceeds about five hundred milliseconds, and the transit time is greater than 70 % of the duration of the of the previously transmitted segment. encoding the sequential segments of the media stream by the encoding system according to at least one encoding parameter that determines a quality of the media stream; receiving, by the encoding system, a request for at least one of the plurality of sequential segments from the remotely-located media player; in response to the request, transmitting one of the sequential segments of the encoded media stream from the encoding system to the remotely-located media player; and adjusting the at least one encoding parameter by the encoding system during encoding of subsequent segments in real time based upon a comparison of a current encoder capacity of the encoding system to a current network capacity of the network and upon a transmit time of the transmitted one of the sequential segments, wherein the comparison is representative of available bandwidth, and wherein the transmit time is the time taken to send the previously transmitted segment, so that the quality of the media stream is adapted in real time based upon both the available bandwidth and the transmit time to send the previously-transmitted segment, wherein the encoding parameter is adjusted such that quality of the media stream is increased when the current network capacity exceeds the current encoder capacity and the transit time is less than 80 % of the duration of the previously transmitted segment, when a buffer of the encoding system is less than about 15% full, and wherein a time since a previous comparison of a current encoder capacity of the encoding system to a current network capacity of the network and a previous determination of transmit time exceeds about five seconds and wherein the encoding parameter is adjusted such that quality of the media stream is decreased when the network capacity is less than the current encoder capacity, the buffer of the encoding system is between about 15% and 30% full and is filling and wherein the time since a previous comparison of a current encoder capacity of the encoding system to a current network capacity of the network and a previous determination of transmit time exceeds about five hundred milliseconds, and the transit time is greater than 70 % of the duration of the of the previously transmitted segment.