Why the Samsung Galaxy J1 Ace can play HD videos?

I have understood that the J1 Ace (SM-J111M/DS) has a WVGA 480x800 screen, and a dpi of 227 approx.

Why then this little block can play downloaded videos @1080p but cannot show anything else (especially youtube videos) despite the fact its screen is capable of it?

(to be noted that one can tell the difference between 480, 720 and 1080, and it's notably better).

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