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With x264 you can watch stuff using VLC on Macs (albeit it has to be a fairly fast Mac...). Also, VLC can handle AAC+ audio (v1 only, meaning no parametric). I've been running a long experiment using on demand files with x264 and AAC+ audio and it seems to be going fine so far. And the chances of you getting sued would only be if you were selling slots of your stream or something similar to the various subscription services. Otherwise, the chances of you being sued for it are very slim. They'd go after the codec maker before the people who use it.
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