This page (http://www.iis.net/downloads/microsoft/smooth-streaming) says
To create Smooth Streaming presentations, the same source content is encoded at several quality levels, typically with each level in its own complete file, using a compression tool
This page (http://www.iis.net/learn/media/smooth-streaming/smooth-streaming-primer) says
IIS Smooth Streaming is based on standard protocols, scales out using existing HTTP delivery and caching infrastructures, and ensures simplified file management by using as few as one contiguous video files to deliver multiple video quality levels.
To me those statements appear to contradict each other, one says you need to encode at several quality levels, the other says you can use as few as one video file to provide smooth streaming - which is correct, or is there something else I'm missing?