Stream encoded video download size / bandwidth is high

There seems to be a significant increase in download size for streamed videos vs. standard mp4s. Is this expected?

I’ve been testing a couple of videos and have seen downloads 2-4x the original when delivered via the Stream platform. I’m guessing this has something to do with re-encoding. Annoyingly the quality also seems worse.

Any suggestions would be greatly appreciated!

Example video:
Original [ 2.4mb ] vs. Stream (XHR only) [ 8.81mb ]