Some owners of Microsoft's Xbox 360 who have signed up to receive movies via Netflix's streaming movie service have seen the same loss of video quality as owners of Roku's Netflix Player.
A mysterious glitch has been hobbling video streams distributed by the two set-top boxes for at least two weeks, said a source close to Netflix on Thursday. The problem is the first setback for Netflix's streaming, which has won accolades since the $99 Roku box debuted last spring. Microsoft, LG Electronics, and Samsung followed with their own set-top boxes featuring Netflix's service. Microsoft did not respond to an interview request.
From Teamxbox.com alternate source below:
Netflix has acknowledge the problem and said it has been resolved:
Recently some Netflix members using Roku or Xbox movie players noticed lower quality streaming than they had experienced earlier. This was a temporary issue that we believe we have resolved. Working with our content distribution partners and key carriers, we made some specific changes that should restore everyone's experience to where it was before – high quality streaming.