It’s one thing to place limits on a few Chinese phones that have low market share outside China (Netflix is not available inside China), but only offering low-quality streams on the world’s most popular smartphone OS would surely have a significant impact on subscription numbers. Netflix may have even signed contracts with content providers requiring them to meet certain DRM standards.

I believe the situation would be different if Google hadn’t built a remote attestation system for Android. Netflix might have had to renegotiate a contract or two, but underserving a huge fraction of the market isn’t viable long-term.