Software decoding performs media decoding through general software processing rather than relying on a suitable dedicated media-decoding path. It can support formats unavailable in a device's hardware, but it may demand substantial processor resources. Whether it works comfortably depends on the stream's complexity, resolution and frame rate as well as the device and application.
A practical example
A computer may successfully decode an unusual format in software while a small television box cannot maintain smooth playback under the same workload. The network can be functioning normally in both cases, leaving processing capability as a possible source of the difference.
A common misunderstanding
Switching to software decoding is a diagnostic option only where the app supports it, not a universal improvement. Watch for increased load and restore a suitable setting after the comparison.
Related terms
Stable technical definition. Editorial approach