A set of techniques is described for enabling a virtual machine based transcoding system. The system enables any transcoding provider to make their transcoding service available to other users over a network. The system can automate the deployment, execution and delivery of the transcoding service on behalf of the transcoding provider and enable other users to use the transcoding services to transcode content. The system receives a virtual machine image, transfers the image to a location where the media content is stored and creates a virtual private network of resources that will perform the transcoding of the media content. The virtual private network may be firewalled or otherwise restricted from opening connections with external clients when transcoding the content in order to prevent malicious use of the media content.