Tvheadend

Implement Dynamic Adaptive Streaming over HTTP.
This feature will allow streaming of multimedia content over Internet even to clients with lower bandwidth.
The bitrate of the stream will be automatically adjusted according to the network conditions.
There is already a client plugin for VLC.

More information here:
http://en.wikipedia.org/wiki/Dynamic_Adaptive_Streaming_over_HTTP

Overview of MPEG-DASH Standard
http://dashif.org/mpeg-dash/

AN OPEN SOURCE MPEG DASH EVALUATION SUITE
http://www-itec.uni-klu.ac.at/bib/files/open-source_MPEG-DASH_evaluation_suite.pdf