said by DSL_Ricer:For most of everything it's good enough. There's still some occasional points where it's noticeable but not distracting... and then there's some points where it godawful (like in Tinker Bell and the Lost Treasure when there's the blue pixie dust explosion the whole screen has blocks for several seconds).
That sounds more like a VBR failure than an overall bitrate failure. Netflix videos are encoded off-line and can take advantage of decently high VBR bitrates for bursts since they can buffer ahead (unlike a live stream). Perhaps that scene required even more than they could afford to burst above the average bitrate, in which case, perhaps h.265 will help