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I'm no videophile, but Netflix et al. are absolutely horrendous compared to any legitimate DVD or Blu-ray release.

You can even do an A/B test, they'd without a doubt prefer the Blu-ray version in case of HD.

Consumers can prefer Blu-ray quality while being satisfied with much lower quality. For many, quality of content and selection would be valued over picture quality.

Another important factor is the type of content. If you're watching a romantic comedy it might not be as important to be in hi-def as if you're watching LOTR.

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