A computer-implemented method for performing video compression comprising: receiving user input related to an online video game transmitted from a client operated by a user over the Internet (206, 410) and responsively executing program code of the video game to render a sequence of video images resulting from execution of the video game; encoding a plurality of video frames or portions thereof according to a first encoding format; transmitting the plurality of encoded video frames or portions to the client device (205, 415, 465, 475) over the communication channel; wherein the operations of receiving the user input transmitted from the client, encoding the plurality of video frames or portions thereof according to a first encoding format, and transmitting the plurality of encoded video frames or portions to the client device (205, 415, 465, 475) are performed with a latency such that the user has the perception that the video game is responding with no meaningful delay; characterized in that the method further comprises: concurrently encoding the first plurality of video frames according to a second encoding format, the second encoding format generating a relatively higher-quality compressed video and/or having a lower compression ratio than the first encoding format; storing the first plurality of video frames encoded in the second encoding format on a storage device; and making the first plurality of video frames encoded in the second encoding format available to the client device (205, 415, 465, 475) and other client devices for playback of the video stream, wherein the first plurality of video frames are frames of the online video game, generated as a user of the client device (205, 415, 465, 475) plays the online video game and wherein the first encoding format is selected to reduce latency as the frames compressed according to the first encoding format are transmitted to the client device (205, 415, 465, 475) over the current communication channel, and wherein the second encoding format is selected to archive the video frames of the online video game, the video frames to be made available for subsequent playback from the archive. receiving user input related to an online video game transmitted from a client operated by a user over the Internet (206, 410) and responsively executing program code of the video game to render a sequence of video images resulting from execution of the video game; encoding a plurality of video frames or portions thereof according to a first encoding format; transmitting the plurality of encoded video frames or portions to the client device (205, 415, 465, 475) over the communication channel; wherein the operations of receiving the user input transmitted from the client, encoding the plurality of video frames or portions thereof according to a first encoding format, and transmitting the plurality of encoded video frames or portions to the client device (205, 415, 465, 475) are performed with a latency such that the user has the perception that the video game is responding with no meaningful delay; characterized in that the method further comprises: concurrently encoding the first plurality of video frames according to a second encoding format, the second encoding format generating a relatively higher-quality compressed video and/or having a lower compression ratio than the first encoding format; storing the first plurality of video frames encoded in the second encoding format on a storage device; and making the first plurality of video frames encoded in the second encoding format available to the client device (205, 415, 465, 475) and other client devices for playback of the video stream, wherein the first plurality of video frames are frames of the online video game, generated as a user of the client device (205, 415, 465, 475) plays the online video game and wherein the first encoding format is selected to reduce latency as the frames compressed according to the first encoding format are transmitted to the client device (205, 415, 465, 475) over the current communication channel, and wherein the second encoding format is selected to archive the video frames of the online video game, the video frames to be made available for subsequent playback from the archive. concurrently encoding the first plurality of video frames according to a second encoding format, the second encoding format generating a relatively higher-quality compressed video and/or having a lower compression ratio than the first encoding format; storing the first plurality of video frames encoded in the second encoding format on a storage device; and making the first plurality of video frames encoded in the second encoding format available to the client device (205, 415, 465, 475) and other client devices for playback of the video stream, wherein the first plurality of video frames are frames of the online video game, generated as a user of the client device (205, 415, 465, 475) plays the online video game and wherein the first encoding format is selected to reduce latency as the frames compressed according to the first encoding format are transmitted to the client device (205, 415, 465, 475) over the current communication channel, and wherein the second encoding format is selected to archive the video frames of the online video game, the video frames to be made available for subsequent playback from the archive.