Render Quality is amazing but video is poor quality and really grainy

Question

When I render my animation I can see each frame being constructed frame by frame and the quality is great, however, when I watch the video that is composed of these frames the video quality is really bad. What should I do?

Change your video compression settings. – GiantCowFilms Jul 26 '14 at 03:39 — GiantCowFilms, Jul 26 '14 at 03:39
Related: http://blender.stackexchange.com/q/3470/599 – gandalf3 Jul 26 '14 at 06:36 — gandalf3, Jul 26 '14 at 06:36

score 1 · Accepted Answer · answered Jul 26 '14 at 03:45

The most probable cause for this issue is bad video compression. Here are my favorite settings for rendering video.

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I would recommend rendering an image sequence instead though, since that offers better formats such as .png

Note: It is nearly impossible to confirm what is wrong without you posting more information.

Render Quality is amazing but video is poor quality and really grainy

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