“ Netflix has given out some details that shows the average user streams Netflix at just over 2Mbps (2000Kbps) even though they encoded video for twice that speed. Most Netflix users watch content in 480p or 720p quality, but Netflix does offer a limited amount of content in 1080p, only available via playback on the PS3.”
2Mbps is nowhere near HD. Combine this stat with Netflix’s recent success and it’s the digital music wars all over again: extremely high quality loses out to ease of delivery and use. iTunes beat CDs and SuperCDs (remember them?) and on-demand, low-res video will beat BluRay.
Source: Business Insider
