Limit remote stream bitrate + H.265 files

So I have a bunch of 1080 H.265 videos all with 2 channel AAC in MP4 containers. All of which are encoded using Handbrake with a constant video bitrate and the audio is all 160 kbps. The video for all of them is usually below 3000 kbps. When the Limit remote stream setting is set to say 4 Mbps I would expect these to direct stream but they are not. This is both to a Xbox One PLEX client and the new fire stick with H.265 support. So for example I have a file encoded at 1781 kbps video with 160 kbps audio and the only way I can get this to direct play is to raise this remote value even higher. At 8 Mbps the Firestick will direct play. At 10 Mbps the Xbox One will direct play. I was hoping to limit remote clients to 4Mbps but still allow direct play for users with H.265 decode support but alas I cannot. Anyone else seeing this?

This isn’t going to work for you in the way you think it is. If you look at the option it is actually 720p@4Mbps. So because you are using a 1080p video but telling the server you want a max of 720p the server is going to transcode down to the resolution you are limiting to. 8Mbps works because it is 1080p@8Mbps.

–edit
Forgot to mention that it also gets converted to h264 instead of HEVC because HLS streaming does not support HEVC so it needs to go into H264 for that streaming format.

Thats a bummer. With H.265 those value are really not in line. Hopefully down the road there will be more granular control over this setting. Thanks for the explanation.