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Dude, I have the EXACT same issue. My iPad 3 and nexus 7 load up HD just fine. The Air sticks at low res. If I reboot the iPad, it works sometimes. But more often than not it sticks with low resolution. I have a 100mbit line as well with an Asus AC router....bandwidth is not the issue. If anyone can figure it out let me know. It's just weird that the iPad 3 has no issues with this and it has the same version of iOS.

Run a speed test on the iPad. I have very fast internet but wasn't getting the HD stream. I am now after the network settings reset.
 
It never dips below 60mbit regardless of where I'm at in the house. That's actually pretty impressive now that I think about it, and the air doesn't have AC. Which makes this issue even more weird. Netflix HD is just so spotty. Sometimes it does work, but more often than not it sticks to low res.
 
Just tried Netflix on my new Air. Ran Skyfall, and it looked gorgeous. For about 2 seconds during the opening credits, it looked a bit pixelated. But it cleared right up and looked too notch after that.
I'm running an AirPort Extreme, and have Comcast Buisness Class internet, averaging around 20Mbits/sec.
Seems like it may be a connection speed issue?
 
Nah, like I said I've got a 100mbit connection, with the air never dipping below 60mbit anywhere in the house. It's got a solid connection. Btw..I actually just tried sky fall as well and HD worked. However, I couldn't get transformers to go into HD. Go figure. Works 100% of the time on my iPad 3, nexus 7, playstation 3, playstation 4, Apple TV, galaxy note 3, my wife's galaxy s4, the IMac, and MacBook Pro 15. But the iPad Air? Nope, it's gotta be fussy. Should I go exchange this thing? Seems to crash a butt load in Chrome too. Although Safari runs fine for the most part.

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Run a speed test on the iPad. I have very fast internet but wasn't getting the HD stream. I am now after the network settings reset.

If it was the network, wouldn't it be fussy on my other machines? All of them work 100% of the time in HD. Especially the iPad 3 which has the same iOS version software. I feel like I've tried everything. This is the first Apple device that has given me issues, although I only just switched to Apple a few months ago.

I really wish I could get this solved. I use netflix all the time so this is definitely a game breaker for me.
 
Network reset works!!

I tried everything including app uninstall-reinstall, wifi-only etc. The one last thing that worked for me was network settings reset. I have resolved quite a few issues with earlier iPhones with the same strategy. Although it feels completely non-sensical as to why this would fix the problem with Netflix streaming, it surely does.

Now, back to season 2 of House of Cards on my fixed iPad AIR.
 
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