Why is Netflix so poor on ATV?

bought atv 3rd gen yesteday, replace ps3 main netflix streamer , itunes match etc, due sucking way less power , less heat.

however, noticed right off bat netflix content looks extremely poor on it. near hd quality, , poor sd stream. ps3 on other hand streams @ 1080p @ highest quality possible service.

gives?

has apple restricted quality of netflix in order fill own pockets hd itunes purchases, similar micro$oft has done on 360?

 

must on setup, got 3 (atv, xbox, ps3) , netflix fine on hd , 3

 

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