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Bandwidth caps and Netflix - Lets face reality...

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GigaOm reports on EyeIO , which provides video encoding technology that promises to save anywhere from 20% to 50% on bandwidth used.  From the article Standard-definition Netflix streams can consume up to 2.2 Mbps of bandwidth. Netflix’s 720p HD videos come in at roughly 3.8 Mbps,  and 1080p videos go up to 4.8 Mbps. EyeIO CEO Rodolfo Vargas told me during a phone conversation Tuesday that his company’s encoding technology can achieve better-looking results that most established encoders with 20 percent bandwidth savings, and that eyeIO can still deliver similar quality to other encoders with up to 50 percent bandwidth savings. Content in 720p could be streamed using 1.8 Mbps, he explained. The company does this by optimizing the encoding process, which means that the results are regular, albeit smaller H.264 files that can be played by end users without any need for additional plug-ins. Sounds great, I'm all for it, lower bandwidth utilization is Good, Kumbaya, et...