But how the heck they can make money on it is a mystery. See this article for instance.
Lets say the average cost to stream and license a movie is $0.50. All it takes is one user streaming ten movies a month and Netflix's cost is five bucks. And with their cheapest DVD offering with unlimited streaming being $8.99 a month, how much can Netflix realistically charge for a streaming only service? Maybe $5.99? So far, the economics of a streaming only service don't work unless Netflix can get very good licensing terms and hope that users who don't stream a ton of movies each month make up for the ones that do.
If I had set it up, I would have charged at least a tenner more for getting the streaming. It would still be an excellent deal. As it is, I don't see what their strategy is.