I don't know, it's an irritating problem that seems like it shouldn't exist, although others seem fine. I do knkw I've had this issue since I got my nexus 7 new. I forgot that there is a kindle fire in my house that aslo doesn't have a problem streaming HQ. For what it's worth, netflix does stream fine, I may try freedi yt, but it just doesn't seem like it should be nescessary.
Not an apple fanboy, but i like my iphone, i messed around with a friend's android tablet and I really liked it, so I bought the nexus 7, but I think next time I'll stick with apple. This is such an irritating and unexpected problem since the main reason I bought a tablet was so I could stop watching vids on my iphone while in bed. Hey, I don't watch TV at all, so it's an even trade.