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Why are optimized files sometimes larger than originals?

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I was having trouble getting 720p MKV files to play without buffering (0.9.16 server, El Capitan, late-2012 27" iMac w. Plex Channel on Roku Streaming Stick), so I used the optimize settings to create mobile-ready 720p versions. However these new .mp4 versions are 1.5x bigger in file size than their originals. They do stream more reliably, but that feels totally counterintuitive. Does mp4 really make that big a difference to stream quality? Thanks for any insights!


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