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why does video buffer when streaming from localhost?

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I'm using Plex Media Server on OSX. I'm watching videos on the same computer that the videos are stored on — I don't need to stream over a network, I'm just using Plex to organize my files. I use the local Plex web app (http://localhost:32400/web/)

However, when I'm watching a video, the video slows down and buffers whenever I use a web connection. Even loading a simple webpage (i.e. Facebook) will cause some stutters. If I load several web pages at once, the video stops altogether with an "insufficient bandwidth" error message.

Why is this? Streaming from localhost shouldn't be affected by external internet traffic, right? Is there a way to fix this? Have others experienced this?


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