That can’t be from the blu-ray. Is it compressed? What? No.
I don’t disbelieve you, it’s just astonishing how much better the Netflix version is.
Yes, the Theatrical Edition Blu-ray really does look that bad. What you’re seeing is not a result of compression on my end. That’s legitimately how it looks on the Blu-ray. Although, to be fair, this is one of the worst examples of the Blu-ray. Most scenes are acceptable, but this particular scene is really bad. (Also, the Theatrical Blu-ray source looks much better in my Extended Edition Color Restoration because I’ve diluted the artificial sharpening and also layered film grain on top).
There hasn’t been a great Blu-ray release of Fellowship EVER – neither the TE nor EE Blu-rays are acceptable quality. It’s pretty sad. That’s why my color restoration exists. It’s much higher quality (and therefore it simply looks better) than any official release.