VIDEO ENCODING

Some embodiments provide a method of processing digital video in a computer. The method receives a first video clip. It stores the first video clip at a first rate in a storage of the computer. From the first video clip, the method generates a second video clip that is at a second rate different than the first rate. The method then outputs the second video clip from the computer. In some embodiments, the first rate is the native rate that a camera originally shot at least a portion of the first video clip, and the second rate is an encoded rate. In some embodiments, the method generates the second video clip from the first video by using the 2:3:3:2 encoding format. Also, in some embodiments, the method outputs the second video clip as the method generates the second video clip.