To support various bandwidth requirements for many kinds of devices such as PC, notebook, PDA, cellular phone, a transcoding proxy is usually necessary to provide not only adapting multimedia streams to the client by transcoding, but also caching them for later use. Due to huge size of streaming media, we proposed the 3 kinds of segmentation - PT-2, uniform, bitrate-based segmentation. And to reduce the CPU cost of transcoding video, we proposed the DQS service policy. In this paper, we simulate the combined our previous two researches that are bitrate-based segmentation and DQS(Degraded Quality Service) policy. Experimental results show that the combined policy outperforms companion schemes in terms of the byte-hit ratios and delay saving ratios.