A method for adaptive video transmission based on channel capacity. As part of the method, a first wireless display capacity in a proximity of a wireless display source device is determined. The first wireless display capacity is based on information that is received from a wireless channel scan associated with a formation of a (P2P) peer-to-peer group that includes the wireless display source device and a wireless display. Further, the video bit rate of one or more devices with wireless display connections in the proximity is determined, the video bit rate of the one or more devices with wireless display connections in the proximity is compared to the wireless capacity, and, based on the comparing, a video bit rate of the wireless display source device is set. A second wireless display capacity in the proximity of the wireless display source device is determined based on a wireless channel scan of a wireless channel to determine wireless display connections in the proximity.