rtsp-simple-server | use RTSP / RTMP / LL-HLS / WebRTC server | Video Utils library

You should use rtsp_simple_server:8554 instead of localhost.

Since in the container called rtsp_streaming, localhost means rtsp_streaming and in rtsp_simple_server, localhost means rtsp_simple_server`. So you should use the container's name.

When you say, "the quality of the video becomes pretty bad," I guess you mean your transcoded output video has a lot of block artifacts in it. That's generally because you haven't allocated enough bandwidth to your output video stream. Without enough output bandwidth to play with, the coder quantizes and eliminates higher-frequency stuff so it looks nasty.

You didn't mention what sort of program material you have. But it's worth mentioning this: in material with lots of motion (think James Bond flick) it doesn't save much bandwidth to reduce the frame rate: we're coding the difference between successive frames. The longer you wait between frames, the more differences there are to code (and the harder the motion estimator has to work). If you radically reduce the frame rate (from 24 to 2 for example) it gets much worse.

Talking-heads material is generally less sensitive to framerate.

You might try setting your bandwidth -- your output bitrate -- explicitly like this.

Combined command: