Here's a Periscope post about LHLS: https://medium.com/@periscopecode/introducing-lhls-media-str...
Most systems that serve HLS media use fixed content-length segments, which requires knowledge of the length of a segment before the first byte can be sent over the wire. So, for a 5 second segment you would need to encode the entire 5 seconds before the first byte can be sent; this does not apply when streaming the segments with chunked transfer encoding.
Incidentally, at Mux we also use chunked transfer-encoding to stream video that is encoded on-the-fly with great performance.