I have setup Wowza, along with the transcoder AddOn on a EC2 small instance. I am streaming a 1280x720 live stream at 800kbps, no audio, to Wowza, which is transcoding it to 480p, 360p and 240p as well. I then stream that to jwplayer 6 using hds/hls (any tips for Android? right now I have a link to the rtsp stream). I have noticed that the video is very choppy now, and the wowzamediaserver_access.log is showing a lot of skipxframe messages.
I haven't gone through the performance optimization part yet, but I'm already thinking that we need a larger instance. I also set an nginx webserver up on it, but it will get very low usage. Wowza itself only needs to handle max 400 people at once, and that will be about as many page requests.
Can someone recommend what to do in regards to this problem?