Could it be you are using an incompatible Browser? E.g. Chrome on Windows works not very good the native Netflix windows app delivers a way better quality
EDIT: Looking at some stuff, it seems like Netflix might "trust" a first-party browser to select the highest-quality stream that it has hardware video decode support for. In comparison, it sounds like there are extensions that enable 1080p in Chrome by pushing it into the list of playlist options, but it can cause a serious performance hit by decoding on the CPU.