1. A method for determining a sub-block size for a macroblock in a transcoding process for an incoming bitstream, the method comprising: determining a macroblock in the incoming bitstream; dividing the macroblock into a plurality of segmented blocks; determining a plurality of statistical measures for the plurality of segmented blocks; determining one or more sizes for sub-blocks to be used in the transcoding process for the macroblock based on a comparison of the plurality of statistical measures for the plurality of segmented blocks.