said by Camelot One:
Pop in a DVD, read the FBI warning.
Netflix has agreements with the studios so they can stream, not just to get the discs at a discount.
But thank you for the comment. Next time I'll actually post something like this so as to not look like an ignorant, opinionated douchebag.
It's true that there is a license required to stream movies, but that is because the law considers streaming to be a public performance.
Also, if you read the FBI warning, it is fairly disingenuous as it highlights the worst-case scenario penalties for CRIMINAL copyright infringement. In order to qualify for that, you would need to make large numbers of copies of DVDs and sell them. Though it does mention distribution, renting a DVD is not considered to be distribution according to the law (see the EFF link in my other reply.)
The law does not consider rentals to be a public performance or copyright infringement, thus they are allowed under the First Sale Doctrine. Please see the links in my other reply.
It is unfortunate that there is so much FUD and misinformation floating around out there. It just confuses people.
I suggest you ask the nice folks at the EFF and they will provide the facts.