Have you tried a different player? And honestly I can barely see a difference...
Jellyfin: The Free Software Media System
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I mean jmp let's you use only the integrated player or cast to mpv shim.
I can play the files with mpv, vlc or Kodi without issues but I would like to use something like plex/jellyfin for all the other capabilities they offer like playback position syncing and so on.
It's kind of mild here but very noticeable in really dark parts of the scene. Makes a lot of stuff pretty bad.
And does the issue happen on the web client? Or when using a player like Kodi?
It's specific to Jellyfin Media Player which is a client for Linux built using electron and mpv.
And using the browser-based client isn't an option? I heard PWAs are pretty well supported on linux...
PWAs are not an issue but hardware acceleration is pretty broken on Wayland and Nvidia combo.
Is Jellyfin doing any transcoding? Or is that direct play?
Direct playing. It's such a drastic difference, there's no banding in Android devices I have, only on my Linux system.
Plex and JMP both use mpv under the hood, so the only difference is going to be playback settings. I am pretty sure the profile=gpu-hq
setting enables debanding so that is probably the culprit. Your mpv example is noticeably smoother so that is some really heavy-handed debanding while Plex goes for something more balanced.
The JMP is probably exactly how the source looks so ideally you should find a better source that doesn't have banding in the first place. That is some really bit-starved video. But if you want debanding you could try adding an mpv.conf file to JMP and try some different deband settings. The defaults by adding deband=on
should be enough but you can also mess with the threshold/range/grain options if necessary.