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Here Comes YouTube 1080p
Co-founder Steve Chen announced the 1080p player last week at the NewTeeVee Live conference in San Francisco. He said it would roll out in a few days, so by the time you read this, it may be available. YouTube has already offered a "high quality" option in the form of 720p since July. Ten percent of the online site's offerings use it. However, with 1080p displays flying off the shelves, and YouTube capability increasingly being built directly into HDTVs, the new HD option may resonate more with HD-capable viewers. The only thing in doubt is how the data rate will affect picture quality. It's technically possible for a 1080p image to suffer from pixellation and other video artifacts if it doesn't have enough bits. See YouTube blog.
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