I'm actually alright with that for something that is intended to be used as a reference point to test codecs and distribution.
Though, I suppose arguably re encoding it could be seen as violating ND.
Considering the summary implies that Hulu, etc. can use it as a demo of the quality of their streams, but the NC definitely prohibits that (promotional demo for a for profit service is definitely commercial use), the summary is just stupid.
The ND may or may not apply to reducing the size by encoding (it could either be fair use, or alteration, depending on interpretation), in the context it's being presented, NC is definitely more limiting.