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I've tested PlayOn as well, and note that it has video quality degradation as well. In their forums, they say they've been testing HD transcode but no ETA.

TVersity Pro does however offer configurable target size for the transcode, but I haven't had a chance to try it (and they have a money-back guarantee instead of a free trial which is a bit annoying).

Both should work with TubeCore.

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