Hollington reports, “Note that there isn’t really a ‘conversion’ process involved here; in reality the iTunes Store considers HD content to be a single catalog item, regardless of whether it’s in 720p or 1080p resolution. So basically, all you need to do is use iTunes in the Cloud to re-download your previous HD purchases and you will get the best version available, subject to your preferences in iTunes, as specified on the Store screen.”
More details in the full article here.
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