A stream pretending to be a file
Transport streams were designed for broadcast — data that flows and survives interference, not files that sit on disk. That heritage is why an AVCHD camcorder's .mts clips and DVR captures seek badly, show no thumbnails and confuse editors: the container carries no proper index, because a live broadcast never needed one.
Usually just a repack
The video inside is almost always standard H.264, so this tool normally remuxes: the streams are copied into an MP4 with a real index, near-instantly and with zero quality change. Suddenly the file scrubs smoothly and previews everywhere. When a stream carries audio or video MP4 cannot hold, the tool re-encodes automatically instead — slower, still local, still nothing uploaded.