Note: as @clibois mentioned below, due to the DRM Netflix uses, all decoding has to be done in CPU, making it somewhat choppy.
Note 2: Even the RPi 3 suffers from these CPU limitations. There is the potentially risky option of overclocking your RPi 3, but I haven't tried this.
If you manage to get smooth playback, please contact me, or post your solution here
UPDATE: I can no longer get this method to work. I have tried using Chromium v47, and v48, and both result in Netflix error "Oops, something went wrong" / C7053-1807, for which I can find no description online. If you manage to get things up and running, please contact me!