Inter sub-mode decision process in a transcoding operation

In one embodiment, a macroblock is determined in an incoming bitstream. In one example, the macroblock may be a 16×16 macroblock for a first coding standard, such as MPEG-2. The macroblock is then divided into a plurality of segmented blocks. For example, an arbitrary sized segment of blocks may be used to divide the macroblock into segmented blocks. In one example, the macroblock is divided into four 8×8 segmented blocks. A plurality of statistical measures are then determined for the plurality of segmented blocks. For example, for each segmented block, a sum of absolute differences (SAD) is determined. Then, one or more sizes for the sub-blocks are determined based on the comparison. For example, a variable sub-block size for an AVC bitstream is determined.