[xvolter]

Depends on the server you are using to host your media sever from. If you're using a Raspberry Pi, then you might not be able to support transcoding at all, definitely not for a 4K AV1 video and a lot of modern formats. So even if Apple TV can play it, the Plex app won't attempt it and will force transcoding from the server.

Even if your server can support transcoding, all transcoding results in quality loss, so if you want to enjoy your media in the best formats then you want to direct play. Just depends on the media you are playing and how much you care about the quality.

[Kirby64]

This has nothing to do with hardware decoding though, no? Hardware decoding generally is more restrictive in supported formats, not less restrictive. Unless you mean AV1 decoding is supported by Apple TV in hardware but not the Plex app itself…

Also, what modern formats for media typically used in Plex servers isn’t supported? Nobody uses AV1 for plex media, no offense. It’s universally h264 or h265. Or perhaps mpeg2 for super old stuff.