I think a lot of people are reacting here as if Netflix is moving from the only signal they have being the star and review system to the only signal they have being the up/down system, and thus confused as to why Netflix would throw away the vast majority of their rating ability. But that's not even close to true. In addition to it technically being up/down/no rating, we've got how long people watch the show for, how…
For some people, such as myself, it will decrease participation (making the "no rating" indistinguishable from "it was okay, but I don't love it and don't hate it, so I wouldn't know whether to upvote or downvote"). A 40% increase is also quite a significant change. I'd be astonished if they got that much more engagement out of it.
There's also quite a difference between having the data for their internal algorithms and what people want to see. Just like Facebook eventually added alternatives for just the "Like" button.
I don't mind having a percentage displayed rather than a star rating (I automatically convert everything in my mind anyway, even though the star ratings are more easily visible at a glance when scrolling through a list), but I mourn losing a lot of expressiveness in the ability to record what I really thought of the video that I watched.