Netflix has announced that it is rolling out "Super HD" videos to all compatible devices, including the third-generation Apple TV. The Super HD higher bit rate stream applies less compression to the 1080p image, so the image looks crisper and sharper than a typical 1080p image. In a blog post announcing the move, Netflix said:
All Netflix members, regardless of their internet service provider (ISP), now have access to the highest quality HD streams available on Netflix.
This means that the great TV shows and movies on Netflix will look even better on HD screens with a higher bit rate stream, Super HD, that applies less compression to the 1080p image.
We initially rolled out Super HD in January only through ISPs with a direct connection to Netflix. Based on the performance data we've seen, and in response to member requests, we are now expanding availability to give all our members the ability to enjoy Netflix in the best possible quality.
Do note that even if you do have a third-generation Apple TV, you may not see Super HD video, depending on the speed and connection of your internet. Netflix uses adaptive streaming to dynamically adjust the quality of video based on the available bandwidth. This allows all videos to play no matter how low your bandwidth is; yet the lower the bandwidth, the potentially lower the video quality.