Macroblock-level adaptive quantization in quality-aware video optimization

A method of optimizing an encoded video stream comprising one or more video frames, each video frame comprising a plurality of macroblocks, each macroblock comprising a plurality of pixels. The method includes receiving an encoded macroblock, decoding the encoded macroblock, and extracting a first quantization parameter. The first quantization parameter corresponds to quantization settings originally used for compressing the encoded macroblock. The method also includes computing a second quantization parameter based at least in part on the first quantization parameter, re-encoding the decoded macroblock based on the second quantization parameter, and providing the re-encoded macroblock.