A method for delivering video content to user devices, the method comprising: storing a collection of video content items in a memory, wherein each of the video content items includes a corresponding encoded video stream and corresponding side information stream; in response to each of a plurality of content requests for a given one of the video content items from a respective plurality of remote user devices, assigning an available one of one or more video transcoder devices to serve the respective user device, wherein the user devices have respectively different configurations of video processing capability, VPC; utilizing each assigned video transcoder device to: receive the encoded video stream and side information stream of the given video content item, wherein the encoded video stream of the given video content item is an encoded version of a given source video stream, wherein the side information stream includes metadata that characterizes properties of the given source video stream; transcode the encoded video stream using the side information stream and according to the VPC configuration of the respective user device, in order to obtain a respective target encoded video stream, wherein the VPC configuration of each user device includes an identification of a target picture resolution requested by the user device, and wherein said transcoding of the encoded video stream is performed so that the respective target encoded video stream has the requested target picture resolution; and transmit the respective target encoded video stream to the respective user device through a communication medium; receiving reports from the user device being served by the available one of one or more video transcoder devices, wherein each of the reports includes a corresponding update to the VPC configuration of the user device; and in response to each of the reports, updating the target picture resolution used by the available one of one or more video transcoder devices to transcode the encoded video stream. storing a collection of video content items in a memory, wherein each of the video content items includes a corresponding encoded video stream and corresponding side information stream; in response to each of a plurality of content requests for a given one of the video content items from a respective plurality of remote user devices, assigning an available one of one or more video transcoder devices to serve the respective user device, wherein the user devices have respectively different configurations of video processing capability, VPC; utilizing each assigned video transcoder device to: receive the encoded video stream and side information stream of the given video content item, wherein the encoded video stream of the given video content item is an encoded version of a given source video stream, wherein the side information stream includes metadata that characterizes properties of the given source video stream; transcode the encoded video stream using the side information stream and according to the VPC configuration of the respective user device, in order to obtain a respective target encoded video stream, wherein the VPC configuration of each user device includes an identification of a target picture resolution requested by the user device, and wherein said transcoding of the encoded video stream is performed so that the respective target encoded video stream has the requested target picture resolution; and transmit the respective target encoded video stream to the respective user device through a communication medium; receive the encoded video stream and side information stream of the given video content item, wherein the encoded video stream of the given video content item is an encoded version of a given source video stream, wherein the side information stream includes metadata that characterizes properties of the given source video stream; transcode the encoded video stream using the side information stream and according to the VPC configuration of the respective user device, in order to obtain a respective target encoded video stream, wherein the VPC configuration of each user device includes an identification of a target picture resolution requested by the user device, and wherein said transcoding of the encoded video stream is performed so that the respective target encoded video stream has the requested target picture resolution; and transmit the respective target encoded video stream to the respective user device through a communication medium; receiving reports from the user device being served by the available one of one or more video transcoder devices, wherein each of the reports includes a corresponding update to the VPC configuration of the user device; and in response to each of the reports, updating the target picture resolution used by the available one of one or more video transcoder devices to transcode the encoded video stream.