Netflix is in fact working very hard to optimize the quality per bandwidth at low bitrates. Megha Manohara from Netflix had a conference talk about it last year

Netflix is in fact working very hard to optimize the quality per bandwidth at low bitrates. Megha Manohara from Netflix had a conference talk about it last year: https://www.youtube.com/watch?v=S9E9xUbcYAM https://www.youtube.com/watch?v=S9E9xUbcYAM Their goal is to have video of acceptable quality at 250 kbit/s, which makes Netflix an option for a lot more people worldwide.