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From what I'm reading in the article, they're cutting the bitrates and not the resolution. This would mean they're still serving you FullHD/4K but with worse quality.

From a quick search, I can't find any guarantees on what bitrates Netflix will serve you. In fact, they already use variable bitrates that can differ per episode of a series.

I don't see your legal retribution having much chance of succeeding.

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