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the encodes are done at 1080. for them to have a 720 they would have to re-encode and store another copy on their servers.
on the scale they use it bandwidth does cost money by how much they use.
with the amount of people streaming, every little bit adds up (get it.. bit😀)

which is why it wasn't available to everyone, they either wanted a special pipeline into each ISP or to put servers internal on the ISP network, so they didn't have to pay as much for bandwidth.

and yes, the aTV will take and play a 1080 stream even if it's set to output on 720.
you are right they could stream superHD to players that are set on 720, but they made a business decision, to save the cost of transmitting the probably several hundred terabytes of data that in theory would have to send using superHD vs 720.

and it's also quite possible you're getting the superHD stream if you're set on 720, just not the logo.
https://support.netflix.com/en/node/8731
Although some Super HD eligible devices do not currently display the Super HD logo, we continue to provide Super HD video quality for these devices.
 
I have been a cord cutter since before it was "cool" or even a noun (I think). I haven't had a phone line or cable service in almost 12 years. If only a LOT more people would cut the cord we could force content providers to seek alternate means like IP service. However the current model is SO profitable for them because people are willing to "blindly" pay huge $s for services/content that don't use.

Yeah, you have me beat. I've been a cord cutter for about 9 years now. I don't think that term was in use then either.

If I could only get the wife to agree to this! I so want to ditch cable all together but she won't let me..... yet!
 
I can notice a 720p over a 1080p TV at any distance. Anyone who can't needs glasses. I only buy 1080p TV's at any size but many people like my mother and my uncles buy a 720p set because it is cheaper and they don't know any better.
 
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