T3i | Grainy footage when recording

Doesn't look THAT grainy to me but hard to tell on youtube. Its shot indoors so light levels will be low.

What exposure settings where you using? I tend to find indoors with no proper lights even at f/2.8 the ISO is ramped up very high i get grain. My guess is it'll be a high iso due to low light causing it.
 
2 issues visible. High noise caused by the camera using high gain due to low light.
Compression artefacts caused by high noise.

You need some lights.
 
It's a pretty good video overall with the kit lens, as ODMphotography says the 50mm F/1.8 can be picked up cheaply and is a much better option for indoor filming.

As your ISO increases so does the noise on the video, but the camera needs to use a higher ISO when filming with the 18-55mm kit lens as it can't let in as much light as the 50mm F/1.8.
 
Your ISO is clearly really high. Even with the 18-55 kit lens, you can get fantastic video at 100 ISO in good light.

I've shot clips on a 550D with Canon 50mm 1.8 at wide open aperture and ISO 400 in almost complete darkness with the subject lighting himself with a sparkler and it looks fantastic in 1080.
 
To add I would:

1)Turn off Auto Lighting Optimizer

2)Make a custom picture profile:

Picture Style - Neutral
Sharpness 0
Contrast -2
Saturation -2
Colour Tone 0

This will give you a "flat" image but in your editing software just increase contrast and saturation, sharpen a tiny bit if required.

3) If you have ISO on auto set max ISO to 800. Ideally I would never go above 400 on the 550d/600d, sometimes you can't always have the lighting you need.

Sorry if this was too technical without really explaining anything, best thing is to use my setting as a starting point and go from there :)
 
You should also note that when shooting in warm conditions, if the camera starts to overheat it will cause noise in the video.
 
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