The Netflix encoding team is responsible for transcoding different types of media sources to a large number of media formats to support all Netflix devices. Transcoding these media sources has compute needs ranging from running compute-intensive video encodes to low-latency, high-volume image and text processing. The encoding service may require hundreds of thousands of compute hours to be distributed at moment's notice where they are needed most. In this session, we explore the various strategies employed by the encoding service to automate management of a heterogenous collection of Amazon EC2 Reserved Instances, resolve compute contention, and distribute them based on priority and workload.