Possible Bug in iOS 8 via Streaming iTunes Video results in lost storage space?

Hi looking for suggestions or help on this issue if you can.

I'm not sure if the issue is my attempting to stream a movie from iTunes under iOS 8 or if it is a result of the iOS 8 update (size) itself or some type of memory leak or inability of memory to be released back to the OS.

This AM I had ~4.8GB of free space on my 16GB iPhone 5C; running under iOS 7. I then updated to iOS 8 by connecting the phone to my iMac and doing the install through iTunes under a USB wired connection. I however I did NOT check after the update how much space was "Available" after the update on the iPhone itself.

While streaming a long movie (LOTR extended) from the iCloud through the Apple Video app; now under iOS 8, I received a notification that my Storage space was nearly used up. While looking in Settings\Usage\Storage I can see that I had roughly 250MB of space "Available" but only 12.7GB was "USED." Here is were things get strange. Looking into the "Manage Storage" section I added up all of the space "used" by the apps listed (Video app was NOT listed) and came up with a sum of 6GB of used space. Now why is that? The listed 12.7GB of used space is not equal to 6GB what is using up the remaining 6.7GB?

Now my research of the web suggests iOS 7 was ~3.5GB in size and my best GUESS at iOS 8 is that it is a16GB - 12.7GB = 3.3GB; although I thought iOS 8 was going to use up more space? For the sake of argument lets say iOS 8 is 5.8GB and my calculated Used Space it 6GB, that equals 11.8GB. Where are the remaining 4.2GB?

Keep in mind I added No new apps (albeit a few updates to FindMyFrieds, Remote, Pages, AirPort Utility, FindMyiPhone all to be iOS 8 compatable). I also force quit the VIDEO app thinking that the video that was streaming was taking up local storage while it was playing. Is it possible that the memory was used up by the stream and is not being Released; hence it seems I have no available space?

Powering the phone down and re-starting it did not seem to do anything.

I still need to go home, connect to iTunes and double check if the available space on the phone matches to what iTunes see.

Thanks and sorry for the long question, just wanted to get as many variables out there in case anyone else has had this issue.