to my mind this does require permission. It changes the nature of the media. For example if I create an interactive quicktime movie, just trancoding it to flash will remove the interactive portions of the file ... a significant change to The Work.
I guess this is why I had such issue with Veoh. The transcoding. To do that in bulk off of feeds is hardly getting permission.
Blip for example does things right. Not only do they only transcode material that is explicitly uploaded, they even let you (effectively) turn off that feature.
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