@thetravman: I'm not sure about that. Every time I launch a video from the application it streams the HD version, providing it exists. But the browser just uses the fastest one. I've tried this from the Youtube application to compare quality and the browser may look 480 at much, but not 1080 like in the application. I have more than enough bandwidth so that shouldn't be the issue.
In case you have, please add a reference to this claim as I haven't found anything on the subject.
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