Live Streaming Software vs. Hardware Encoders: Key Differences

Streaming made clear.

Published April 16, 2025
Author Earthwit
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Live streaming has become a vital communication medium for gamers, researchers, programmers, and content creators. Whether you're broadcasting gameplay, conducting a live coding session, or hosting an educational webinar, the choice between using live streaming software or a hardware encoder is pivotal to the quality and stability of your stream.

This article explores the key differences between live streaming software and hardware encoders. We'll break down their features, performance, usability, and cost, and show where each excels. We’ll also explore why Yostream—a browser-based, multistreaming platform is ideal for creators seeking affordable, low-latency streaming with custom branding.

By the end, you’ll know which encoder setup is right for your unique needs.

How Does Live Streaming Software Work?

Live streaming software encoders run on your computer and convert raw video input into digital format for streaming platforms.

Key Features:

  • Converts video and audio in real-time.
  • Integrates with cameras, mics, and overlays.
  • Sends encoded content to streaming platforms (e.g., YouTube, Twitch).
Example: OBS Studio, Streamlabs, Yostream.io.

Advantages:

Limitations:

  • Performance is tied to your computer's specs.
  • Potential for lag or dropped frames under heavy CPU load.

What Is a Hardware Encoder and When Should You Use It?

A hardware encoder is a dedicated physical device built solely to encode video streams. It's often used in professional broadcasting setups.

Key Features:

  • Standalone device that doesn't rely on a PC.
  • Connects to cameras and networks directly.
  • Offers consistent, high-performance encoding.
Example: Teradek Vidiu, Blackmagic Web Presenter, AJA HELO.

Advantages:

  • Reliable performance without CPU strain.
  • Less prone to crashes or lag.
  • Ideal for long or mission-critical streams.

Limitations:

  • High upfront cost.
  • Less flexible for beginners.
  • Limited customization.

Which Should You Choose: Software or Hardware Encoder?

The decision depends on your use case, budget, and tech familiarity. Here's a quick comparison:

Comparison Table: Live Streaming Software vs. Hardware Encoder
FeatureSoftware Encoder (e.g., Yostream.io)Hardware Encoder
CostLow to FreeHigh
Ease of SetupEasy (Browser-based)Moderate to Complex
Custom BrandingYes (Advanced in Yostream.io)Minimal
MultistreamingYes (Native in Yostream.io)Sometimes, via cloud setup
PortabilityDevice-dependentOften portable
ReliabilityDepends on system resourcesVery high
Target UsersGamers, creators, educatorsBroadcasters, corporates

Why Is Yostream a Smart Software Choice for Live Streaming?

Yostream is a browser-based live streaming software purpose-built for today’s digital creators. It combines simplicity with powerful features, making it an attractive alternative to both traditional software and expensive hardware encoders.

Unique Benefits of Yostream:

  • Browser-based: No installation required. Stream directly from Chrome or Firefox.
  • Multistreaming: Broadcast simultaneously to YouTube, Twitch, Facebook, and more.
  • Low-latency: Ensures real-time audience interaction with minimal delay.
  • Affordable Pricing: Plans designed for solo streamers and teams.
  • Custom Branding: Add logos, themes, and overlays that match your identity.

Whether you’re a gamer streaming high-paced action or a professor hosting a remote lecture, Yostream provides a seamless, cost-effective experience.

When Does It Make Sense to Invest in a Hardware Encoder?

You might need a hardware encoder if:

  1. You manage mission-critical streams with no room for technical failure.
  2. You're streaming from remote locations where a PC setup is impractical.
  3. You require consistent 24/7 streaming, like surveillance or live events.

For everyone else, software encoders—especially browser-based ones like Yostream—are sufficient, convenient, and scalable.

What Are the Long-Term Costs and Maintenance Requirements?

Software Encoder (e.g., Yostream):

  • Subscription fees (if premium features are needed).
  • Minimal maintenance, occasional updates.
  • No hardware repairs or replacements.

Hardware Encoder:

  • High initial purchase cost ($500+).
  • Potential maintenance or replacements after prolonged use.
  • Firmware updates required occasionally.

Over time, the total cost of ownership favors software unless constant mobility and ultra-reliability are non-negotiable.

How Do Streaming Quality and Performance Compare?

Software encoders rely on your device specs. A mid-range gaming PC can handle 1080p 60fps streaming well, but performance dips if multitasking or gaming heavily.

Hardware encoders provide consistent output, usually up to 4K, and are unaffected by PC workloads.

However, Yostream reduces resource consumption by operating in the browser and leveraging cloud-based processing—a smart balance between quality and efficiency. The cloud-based processing enables users to live stream smoothly even from a low-end PC.

Which One Is Best for You?

If you're a gamer, developer, or content creator looking for flexibility and value, software encoders like Yostream are the clear winner. They offer excellent performance, ease of use, and features like multistreaming and branding at a fraction of the cost of hardware.

But for broadcasting professionals who need bulletproof stability and don’t mind the price tag, a hardware encoder might be the better choice.

Try Yostream free today and experience browser-based live streaming done right.

FAQs: Live Streaming Software vs. Hardware Encoders

1. What’s the best software encoder for beginners?

Yostream is ideal for beginners due to its browser-based interface, simple setup, and multistreaming features.

2. Do hardware encoders offer better video quality?

Not always. While they’re more consistent, modern software like Yostream can match quality when used on a capable system.

3. Can I multistream with a hardware encoder?

Only some models support it, often requiring add-ons. Software solutions like Yostream make multistreaming easy.

4. Is software encoding secure for professional use?

Yes, especially with cloud-based platforms like Yostream that offer encrypted streaming and secure login.

5. Do I need a powerful PC for streaming software?

Somewhat, but browser-based options like Yostream reduce the need for high-end specs by offloading tasks to the cloud.

6. What’s the most affordable option for hobby streamers?

Software encoders are the most budget-friendly. Yostream offers free trials and competitive plans.

7. Can I switch between software and hardware encoders easily?

Yes, as long as your setup supports both. You can experiment to find what fits your workflow best.

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