I know there was already a thread on this exact issue here:
However, I do believe this HAS to be a bug for Android TV and NOT an intended feature. If everything, the web app, the ios app, the windows app, probably the roku app, prioritizes direct playing an optimized version solely because of bandwidth limits over transcoding, then there’s something wrong with how Android TV ignores optimized versions for bandwidth if the higher bitrate is also direct playable. Also no, it didn’t matter the order of the files. It also didn’t matter if the client limits remote streaming or if there was a limit on the server side. Android TV still picks the highest bitrate, decides it can’t direct play it, and transcodes without even looking if there was an optimized version instead.
Just confirmed Roku tv picks the lower encoded file if there’s a bandwidth limit. Also like I said, limiting remote stream from the Android TV app results in the client trying to pick the highest bitrate file then transcoding down to that bitrate rather than playing the optimized file that is already in that bitrate range. If one of the reasons to have an optimized versions is:
You have limited upstream bandwidth and don’t want people streaming from outside the network to need your server to transcode. Again, make optimized versions that can be served without transcoding.
Then there’s something seriously wrong with Android TV as far as the logic for picking an optimized version is.