Netflix is intelligently re-encoding its entire catalog in an attempt to cut data usage by 20 percent, Variety reports.<br />It began the project in 2011 and has worked with university researchers to automate the process.<br />A simple animated show like My Little Pony doesn't require nearly the same amount of data to stream in HD as a visually complex movie like The Avengers, but under Netflix's original system, the former required as much data as the latter.<br />Netflix engineers realized that it could optimize its data usage by re-encoding each piece of content in its library, a herculean effort.<br />Additionally, Variety notes that Netflix is aiming to soon launch in developing markets, where it will need to focus on slower internet connection speeds and much higher mobile usage.<br />Re-encoding its entire catalog seems certifiably insane on the surface, but Netflix has many compelling reasons to undergo the effort.