Connection Speeds
Netflix uses the latest compression technology to meet ever-evolving standards, but connection speeds play an equally important role in your viewing experience as the application instantly gauges the speed of your Internet connection and adjusts the picture quality accordingly. Netflix and Nintendo recommend connection speeds of 3.0 Mbps or higher for DVD-quality viewing; lower speeds may result in a less sharp picture. Netflix users can control their video quality settings, which helps optimize video quality and download speed depending on the strength of your Internet connection.
Resolution
Regardless of Netflix video compression or connection speeds, the maximum display resolution of the Nintendo Wii console is 480p. In contrast, high-definition content runs resolutions of 720p or 1080p, the standard resolutions of HDTVs. Some HDTVs use a process called upscaling to display standard-definition content, such as that produced by the Wii, on high definition monitors. Although this process doesn't convert a standard-def picture into high-definition, it does help ease issues such as distortion and color loss.
Wii U
Unlike the original Wii, the console's next-generation successor, the Wii U, presents Netflix and other content in high-definition. In fact, the Wii U's Netflix app was the first version of Netflix to present the user interface at a resolution of 1080p. The Wii U Netflix app also adds new features, such as a touchscreen interface, dual-screen display and off-TV viewing, all made possible by the Wii U's GamePad, which features a 6.2-inch touchscreen-enabled display. Like all versions of Netflix, the picture quality is susceptible to degradation due to connection speeds.
Troubleshooting
If your Netflix video appears compressed, blocky or pixelated on your Wii, Nintendo has some suggestions. First, minimize Internet bandwidth usage from other sources, such as other devices streaming media content or large downloads on the computer. Interference from other cordless devices or a router that is placed next to large metal objects or behind thick walls can also cause a loss in picture quality.