Requirements
To stream Netflix through your Playstation 3 you must have a wifi Internet connection. A router should be connected to your modem that sends the signal to your PS3. Make sure no other Internet-enabled devices are between the router and your PS3 to assure you get the best signal at all times. When signing up for an Internet service, consider a high powered Internet service that will allow you more bandwidth.
Problems
Contact Netflix if you continuously have problems streaming their media on your PS3. The issue may be picture quality within the company; this is something you cannot fix. Report a problem on Netflix's website under your account profile. Netflix may inquire through email how the picture quality was on a specific movie or program. Respond to these emails so Netflix's team can fix any problems encountered.
Connections
A bad wire connection can cause your PS3 to appear distorted on your television. Check all wires running from the PS3 to AV jacks on your television. First push in on the cords to see that they are tight in the AV jacks. Run your hand along the wires to assure there are no frayed or loose wires. Also check that the AV cords are in the proper jacks on the television. They should be matched by color. If the Audio In cord is in the wrong jack, it could cause sound to be distorted.
Router Problems
A bad router can kick you off the Internet or cause the Internet to lag. When you run a computer, other consoles and a PS3 while watching Netflix, you may have bandwidth issues. Turn off any other Internet-enabled devices while watching Netflix on your PS3 to avoid lagging issues. If you run only Netflix and no other downloads or devices, you may see an improvement in the quality of picture and sound.