Two hours vs. instant streaming isn't a localization issue, you can easily stream 1-2mbps (or much more) from half way around the world. ~100ms in latency is nothing with a fat, non time sensitive stream like recorded video.\
It sounds like the specific POP the google DNS server is being fed is overloaded with traffic. It should be fairly easy for Apple to resolve the problem on their end, by simply not resolving to overloaded pops (they shouldn't ever anyway).
Other video cdn backed services (like netflix) don't suffer POP overloading on public DNS servers like GTE or open.