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Oh man, I thought this was just the 5/5T's problem but I just checked the X and it's L3 too. To be honest I don't remember the last time I actually used Netflix on this phone and the only media I stream is Youtube and Instagram videos on my lunchbreaks but that's because the screen is pretty small and the audio is mediocre so it's not a great device for it; I specifically wanted to get a phone with a bigger screen because I'm jealous of my wife downloading stuff on Netflix for flights on hers.
Maybe my ability to tell resolutions apart is all in my head but I do always immediately notice when a YT video drops to 480p when I'm suffering with a crap connection.
squidink
Hadn't heard of Widevine before, seems the Oneplus phones also don't have L1 support.
Not entirely sure if it does impact on iplayer HD a bit of googling suggests that may be one of a number of DRM technologies that they use and just watching a video now it seems to be HD (although hard to tell for certain).