HD video in 720p can use anywhere from roughly 8-15 Mbps, so transmitting it over the internet is quite a daunting task. As I enjoy watching LOST in HD, I wonder how Xbox LIVE can do it? I think that video quality is determined based on the quality of your internet speed, so do you only get the HD if Xbox LIVE/Netflix thinks your internet is good enough for it?
Yeah actually in a way its easier to transmit this in HD because they can compress the footage, i.e. borrow pixels that don't change from one frame for use in the next. They can't do that on live television.
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