Today I successfully installed the Netflix add-on on my Raspberry Pi 3 running OSMC. I was pleased that the installation was successful (after fiddling with packages, repositories and authentication keys). The first video’s I checked however had a lot of stutter up to the point that the video just stopped. It reminded me a video I once watched that was encoded in h.265 which was to much for my poor Pi. I noticed that the video’s I watched through Netflix are also encoded in h.265, so it makes sense that they won’t play either. I think I solved this by going to Netflix in the browser and setting “Data usage per screen” to “Low”. At least, after setting this (and rebooting the Pi) video’s play smoothly (and with good enough quality i think). It’s just that I haven’t seen this suggestion anywhere else. Have I just not seen it or has this setting nothing to do with the playback performance (and has the issue resolved itself spontaneously)?
Netflix only supports software decoding presently, so lower resolution (and in turn lower bitrate) will indeed solve stuttering.