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.
That's not the only way to dim an LED, just the cheapest. Variable current power regulators are the premium option.
A screw-in LED bulb combines LEDs and power regulating electronics. Some of them handle the variable input voltage a household dimmer provides gracefully, but that's more expensive.