Higher bitrate can preserve more visual information, but it also increases transfer requirements and can make playback harder on constrained networks.
Bitrate is a tradeoff
There is no universally correct bitrate. The right choice depends on resolution, frame rate, codec, source complexity, device targets and the quality bar for the product.
Why bitrate affects business decisions
More bits can mean more network transfer and potentially more storage. That connects a technical setting to viewer experience and infrastructure economics.
Think in ladders
Many playback systems use multiple renditions so the player can select a representation appropriate to current conditions. The available profiles and exact behavior depend on the encoding and playback stack.
Next step
If you are evaluating a platform rather than learning the concept, compare the operational workflow and the cost model together.