Another Movie issue with Direct Stream

First… great job on the latest PS3/4 client… But sorry to have some bad news…

I was trying to play a movie last night. It is an MKV container with h.264 video and AC35.1 audio. System was direct streaming both to PS4. However, playback started at the credits of the movie even though the playback counter started at 0 and was incrementing forward. Playback was very jumpy as well. I turned off direct stream and the system transcoded and the movie played fine

I played the file back on my Mac using VLC with no issues so I know it is not the file per say. Attached is the XML data for the movie

It’s a relationship between the file and the system. The AVC level (level="50") of the file is too high for the system to play vis Direct Stream. Our next feature update to the PS4 will force transcoding down to AVC level 4.0.

This will allow it to direct play? How does it decide when to transcode or direct play. My system had like 8 CPU so it should be able to direct play no problem