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Direct Play but High CPU Use

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Recently upgraded my PMS to a Mac Mini 2.6 Ghz Core i5 with 8 Gigs of RAM from my old 09 Mac Mini because I was having playback quality issues (pixelated video, blurry video, etc) and thought it would solve the problem. However, the problem still persists. I have noticed that even when "Direct Play" to an AppleTV or Xbox One is enabled, the CPU use for the Plex New Transcoder is sometimes as high as 300% in Activity Monitor, and usually hovers in the 30-40% range for the length of the movie. This leads me to believe that there is some form of transcoding going on in the background that is causing video play back to be distorted.

Example from last night, Die Hard, original copy from MakeMKV, multiple scenes where text is illegible or macro blocking on the actors faces. Same scene played on Infuse for the AppleTV, using the same MKV file renders the original DVD quality film without any playback issues (all done via an AC wireless connection, and gigabit ethernet to the Mac Mini).

I've searched around on the forums and it seems that Thumbnail generation can be a problem, however, this is disabled on my server.

I'm hoping for a few suggestions, I'm wondering how I can disable transcoding, and if that's even the problem. Any help would be greatly appreciated.

Thank you!


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