I would like to chime in with a different 4K solution, if not a somewhat labor-intensive one.
The issue with 4K and Plex is not the resolution per se, it’s also one of HDR and SDR. Specifically the 4K that we usually talk about 'round here is not BT709 color space 4K files (which may or may not be HEVC) which are SDR, but are usually Main10 HEVC files. In a BT2020 colorspace.
As an intro, I have many clients playing to 1080p TVs. E.g., these clients might (and usually are) be “capable” of playing Main10 HDR files… let’s say I have a Shield hooked up to a 1080p TV… but transcoding is necessary and forced because not only must the client transcode from 4K->1080p, it must also deal with going from that BT2020 space to a BT709 space.
But guess what. A 4K capable client playing to a 1080p TV can direct play 4K files if the 4K file can be “transcoded internally” vs by the server. So my 4K capable Rokus, and Shields, will directplay 4K files if the file is a “simple” 5.1 or 5.2 HEVC 4K that is not Main10, and in the BT709 space, or a 4K H264 BT709 file too. (And in this setting if the server must transcode the audio of the 4K file, the client will still directplay the 4K file to the 1080p TV.)
Now this will be an “to each his own” bit of advice. Clearly if you want to “compress” a 4K HDR file to 4K SDR, some image info will be lost. But to my eyes, resolution on a 4K TV is as important as the color space and the dynamic range offered by 4K HDR. I have begun converting 4K Main10 HDR files into 4K SDR files using Adobe Premiere and its SDR conform filter. By my eyes, the output looks actually really fabulous. In fact, strange as it sounds, I have begun preferring an HDR->SDR 4K file because I can 1) sometimes get a “punchier” and sharper picture even playing back on a 4K HDR TV, and 2) it is easy to “disperse” this file to all clients. And in the setting where my server MUST transcode the 4K file, like to a remote client at ~10-20Mbps, the transcode runs well and the server can pretty well handle it and of course you get a nice looking image with non-washed out colors. (Right now I still put everything in the HEVC codec but I imagine transcoding 4K Main10 HDR HEVC to 4K H264 SDR would be even more ideal for some.)
Anyways, Premiere right now is the one software tool I know of and have access to that can do this. It takes about 2hrs to transcode a 2hr 4K movie from HDR to SDR in Premiere so that’s not bad. Just get a plugin that allows hardware transcode in Premiere, they’re out there.
So to be clear: 4K Rokus and Shields can directplay 4K files to 1080p TVs. Other clients that are 4K capable can do this too I reckon. And right now in Plex server transcodes of non-HDR 4K files are not too taxing and won’t cause buffering (I have 9900K processor and a P2000). And also btw, file size (like 40GB vs 80GB) doesn’t matter… you’re still talking bit rates waaaay under gigabit speeds either way.
edit:
as you can see below a 4K->720p transcode only should take a few percent CPU power. Theoretically if Plex can invoke tonemapping properly one day we will all be good with 4K transcoding. But for now, 4K SDR transcoding is very viable and doable.