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
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.