They could do it on a few clients then ship the data back to the server. If they’re resourceful those clients don’t even need to be watching the video! (they could send it and compute the output in the background of another stream)
Yeah, but if google solve distributed processing just imagine the cost savings elsewhere (imagine involuntarily crowdsourcing video encoding, it would save them millions)
The effect is created by scaling and blurring the storyboard images that are also used for the seek preview. The image is refreshed every ten seconds, with a CSS opacity animation fading from the old background image to the next over a couple of seconds.
This sounds like it should be relatively cheap if composition is properly accelerated.