When it comes to the Netflix issues? Yes, that's my impression. It's either blamed on the app or the unproven (and basically unfounded) notion that certain devices get priority over others when it comes to streaming bandwidth. The idea that Netflix would lessen the quality of streams for a few thousand Oppo owners thinking that it would somehow save significant bandwidth and improve the experience for millions of other devices is quite silly.
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If I understand you correctly, you are saying that if you set your OPPO to output 1080p the resulting picture quality will be different than if you set the OPPO to output Source Direct. Can you see the same difference when playing a 1080p movie from a Blu-ray disk?
With a Blu-ray film based movie they very definitely should be the same. With a Netflix stream which option is better, 1080P or Source Direct? Do you know what Netflix is doing with the 1080i and 720p HDTV sources before they are streamed? Is it possible that when OPPO is set to output 1080p, it has to process the Netflix stream because the stream isn't 1080p? I'm asking because I don't know and have never given the stream itself any thought.
With a Blu-ray film based movie they very definitely should be the same. With a Netflix stream which option is better, 1080P or Source Direct? Do you know what Netflix is doing with the 1080i and 720p HDTV sources before they are streamed? Is it possible that when OPPO is set to output 1080p, it has to process the Netflix stream because the stream isn't 1080p? I'm asking because I don't know and have never given the stream itself any thought.
I don't know how the Netflix app interacts with the playback device when it comes to different levels of quality. My suspicion is that the resolution of the stream, regardless of the actual image quality, is always 1080p. I say this because using Source Direct with Netflix always results in 1080p output from the Oppo; it doesn't switch resolutions and re-sync with the display when the quality changes mid-stream. Netflix handles all the deinterlacing and scaling on their end when they first encode the video.
I haven't done the same extensive testing with Blu-ray playback as I have with Netflix because I've been generally pleased with the quality of Blu-ray on the 103. Others, including Bob, disagree with that assessment and think that Blu-ray playback is a bit on the soft side. Based on what I have checked, I don't see an appreciable difference between 1080p and Source Direct when viewing 1080p Blu-ray content. I do, however, see a significant difference between 1080p and Source Direct while watching Netflix because the 103 is applying heavy noise reduction to Netflix streams when set to 1080p. I've tested a lot of streaming HD content; significant detail is lost and motion artifacts are common when using 1080p. This noise reduction is bypassed using Source Direct, resulting in a considerably better image.
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There is no way I would pay $500 to anyone for a streaming device at this point in time. When streaming was a free add-on at Netflix, I watched some TV series the way you are doing now. I used my computer with it's 24" screen and the SD PQ was acceptable. There was a little 720p available but not with anything I wanted to watch. Blowing the Netflix image up to a 60" display was too much to ask. Maybe I should try it again, If so, I'll use a dedicated device that's one of Netflix's main devices. Today's AVRs, Blu-ray players, and TVs are loaded with features that are meaningless to a lot of people who buy them. It must be a rare individual who puts a home theater together in 2013 and uses all the included features that are found in those three types of devices. 

I didn't pay $500 for a streaming device. I paid $500 for a high-end Blu-ray player that includes Netflix streaming as a feature. Expecting it to provide the best performance possible in all its advertised features isn't unreasonable at this price point, especially considering far less expensive devices are able to provide better performance.






















