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Nowadays, a fast network improves the quality of our daily life and we can enjoy a variety of services over the Internet. Different types of media streaming services have been proposed and utilized as the network speed is now sufficiently fast to deliver high-quality live streaming. Usually, different media streaming services deliver streaming data by using different protocols such as the real-time message protocol (RTMP), real-time streaming protocol (RTSP), and Windows media HTTP streaming protocol (WMSP). In this paper, we propose and implement a cloud-based scalable and cost-effective video streaming transcoding service platform to provide the service of changing real-time streaming protocols (RTMP/RTSP) and codecs (H.263/H.264). A transcoder dispatching problem (TDP) over the cloud platform is also defined, which attempts to serve all the transcoding requests by minimizing the cost of virtual machines. Further, a transcoder dispatching algorithm and an online transcoder dispatching algorithm are proposed for the TDP. These algorithms are implemented on the Amazon EC2 platform. Experimental results demonstrate that by renting different levels of virtual machines dynamically and intelligently, we can provide a scalable and cost-effective transcoding service for bridging heterogeneous streaming media.