It's not the encoders... it's the on the fly scalable video playback. That's the technological marvel that allows us to watch web video without it seeming to stutter when bandwidth clogs up.
The big picture choices are:
1) You can have non scaleable streaming playback and no one will watch it stutter for more than a few seconds before going elsewhere.
2) You can do non scaleable playback and force people to download the video so it buffers optimally and plays perfectly.
3) You can share your scaleable streaming video with everyone and everyone can enjoy it to the degree that their internet connection allows. That's what YouTube is.
All things considered... you are looking great!
best,
mike