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I am getting this message a lot as well. On my Xbox 360.
I have Clear / Clearwire Internet and pull my Internet out of the air, using a specialized modem [Wimax Wi-fi]. I notice my signal lights vary wildly from 2 to 5, with 3 usually being the average.
I attributed my Netflix slowing down to the fact that my Wi Max modem was losing and gaining bars. I can move my modem 3 inches one way or another, and gain or lose 2 signal lights. Much like Bars on a cell phone.
You have to have broadband to even get Netflix streaming, so I would bet that Netflix is stating the message at the fact that your surfing speed has slowed.
I wouldn't mind that hiccup with the streaming, if I didn't have to put up with the shoddy navigation controls on the Xbox. I want to back it up 30 seconds, and inevitably get sent back to the Netflix dashboard, and to resume, I have to re-buffer the film, and also redetermine quality. - And then still rewind it after that.
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