But, I'm not in industry, and the last time I poked my head in I recall things being way uglier and more complicated than I had imagined. There was a good conference talk that was linked here once but I've lost it. Talked about the sort of awful, buggy things (formatting/file wise) that people try to upload that break everything.
A big note. All of this wasn't used by YT because they've always used a widely used standard codecs and media containers. All the lower qualities of videos they provide use storage nearly the same as the highest one (so 2x total), all bitrates are the same for all videos. As for download part, the players in auto quality would get first a maximum quality they can for current download speed, if there's a room or connection isn't stable - also 480p version, and if the speed was enough to download current and next chunk in lower quality it would download the best and switch to it over on completion (there were a times when player was downloading the whole video in the best quality after it had finished in an optimal).
> the sort of awful, buggy things (formatting/file wise) that people try to upload that break everything.
YT has very narrow list of formats allowed to upload with hard breaks in converting process, especially for the audio.
It's a bit out of date (2002), but the core video encoder material was solid. It's a bit heavy in representing concepts using symbolic/equation notation. That, for me, made the jump from 1D signal processing to multidimensional signal processing tougher than it needed to be.
There are probably better resources so definitely don't just take my word for it! :)
(For scabilility, IIRC the terms "enhancement layer" and "base layer" are particularly important, as are the block diagrams that generate them.)