Hi. I was just wondering, if I ripped/converted my Blu-rays, and then encoded them into an MKV format (Loseless) would there be any difference in quality, and would the file size be smaller?
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What 'lossless MKV' format is that? If you want to encode a BD to MP4, then re-encode it to MKV, of course there will be a quality loss. And the file may be smaller.
If you just repackage it from MP4 to MKV by changing the container, then it may stay the same quality, but it would also stay about the same size, or maybe even a bit larger.
What would be the purpose of all this re-encoding/repackaging? If you just want to repackage the BD file to a MKV container, try MakeMKV.
In fact, remultiplexing the Blu-ray content from M2TS to MKV would probably reduce the size by a few percent, because M2TS is quite a waste of space as container, due to the small block size and the quite significant multiplexing overhead. MKV is a much more efficient container.
The video content won't be altered, therefore there can't be any loss of quality. As redwudz mentioned, MakeMKV would be an optimal tool for this purpose.
There is no MP4 container in relation to Blu-ray disk content. Do not abbreviate MPEG4 (related to the video format) with MP4, that will cause confusion. Your thread title already does so...
The overhead of TS is there for a reason: packet transmission predictability and robustness. Which is why it is used now almost exclusively for all forms of broadcasting (as well as BD, AVCHD, HDV and many other cam formats). So, not really "wasted".