Best Answer Angelblue05 , 23 May 2015 - 12:08 AM
Direct play: Kodi plays the file, bypassing your Emby server. This can only happen if Kodi has access to the file via local/network.
Direct stream: Emby server feeds the file as is to Kodi. There is no modification done to the file.
Transcoding: Emby server feeds the file in a readable format to Kodi. This happens in the event Kodi doesn't support the file format you are trying to play.Go to the full post