Netflix on ATV and Xbox

Netflix.
Same internet.
Works on the Xbox.
Freezes on ATV.
Why?

I guess it's just a cheap little hockey puck without enough or properly designed guts to stream Netflix properly.
That's a bit of an exaggeration. There have been a lot of complaints about Netflix performance, but there are also many who report that Netflix works well for them.
I suspect the problem most likely lies with a bug in the embedded Netflix player in the ATV2. Netflix adjusts the bit rate dynamically during playback, which is something iTunes doesn't do. It could be that the embedded player doesn't effectively handle that process, which might result in performance problems on slower or erratic networks but not on stable networks running at sufficient speed.
I would expect the Netflix problems to be fixed in a future software update.

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