You understood everything correctly.
It’s not really a straight forward process, even for developers, as it’s not something most people do. The encoding and MPD part would have to be done for every video.
There are (paid) online services that do all of this automatically (think YouTube, but for developers). I personally don’t have any experience with them, though, so I wouldn’t know which I’d recommend you.
Services like:
And I’m sure there are many more