Netflix writes on their blog that they have spent years developing an approach, called per-title encoding, where they run analysis on an individual title to determine the optimal encoding recipe based on its complexity.
Imagine having very involved action scenes that need more bits to encapsulate the information versus unchanging landscape scenes or animation that need less.
This allows Netflix to deliver the same or better experience while using less bandwidth, which will be particularly important in lower bandwidth countries and as they expand to places where video viewing often happens on mobile networks.
It is really nice to see that Netflix tries to get a wider viewers experience. The blog might be a bit technical to read, but you understand it as the writer have done a quite good job. However.. One question goes to my mind about Netflix to support some browsers than others. Google Chrome and Firefox can only play 720p HD videos, while Edge and Safari can play videos in much better quality. I sense something which isnt so fair here… Anyway. Netflix have made it legal to have many movies and serials at home for almost nothing.
The Netflix Tech Blog