Go to Settings -> VIP Services -> Netflix and switch 'H264 profile' from 'High' to 'Main'. Problem solved :cool:
ms-dfav
Main setting does give a bigger file, the thing I did not like about main setting in Netflix is the lack of choices.
You get either a 900 meg choice or 93 meg, but the 900 meg is bigger than the 165 meg top choice on high.
So that should solve it for OP, as that's all the options Netflix gives.
This is on high setting:

:
This is on main setting: