Smooth, large, and fast loading video effect

Hi,

I’ve been seen a very cool video effect in flash sites lately, enabling large fluid videos with low loading times. It appears to load a small video and then spread the pixels out with black spaces in between, creating a darker video ( actually, a very cool look ) but one very precise and flowing, with no scaling noise.
(example :http://www.gatorade.com/#/products)

I’m guessing it’s done by loading the video into a matrix and then going from:

P1×1 P1×2 P1×3
P2×1 P2×2 P2×3
P3×1 P3×2 P3×3

to something like:

P1×1 Black P1×2 Black P1×3
Black Black Black Black Black
P2×1 Black P2×2 Black P2×3
Black Black Black Black Black
P3×1 Black P3×2 Black P3×3
Black Black Black Black Black

If anyone knows how to do this, or if it’s done another way. I would love to know.