I suggested switching to HTML5 streaming before, however as Matt pointed out back then, there are some technical challenges to solve.
For one, sadly the choice which codec to use is not trivial. H264 would be my first thought, however its not supported by all browsers (in fact, only very few). Ogg Theora or WebM/VP8 would be the best choice with broader support, both work with most browsers, only IE needs some help.
In addition to the codec choice, apparently doing a live encoding and streaming seems to be challenging for most container formats, although i would hope doing it with WebM should be possible. Apparently doing this with FLV was rather easy.