i can fit every movie i've ever encoded on 1 external hard drive... h264 is more then enough compression size.... theres noway im re-encoding all my blu-rays again to save on a few gigs. i doubt it would be half the size of h264 anyways. you can only compress so far. i have old winace compression program from 13 years ago which compresses almost as well as the newest versions of winrar or 7zip. compression only can go so far.