Next time you watch a DVD you bought, not rented, pay attention to the intro screen text. You will usually see a clear statement that the movie is licensed for

Next time you watch a DVD you bought, not rented, pay attention to the intro screen text. You will usually see a clear statement that the movie is licensed for home/personal use only. Some claim such a license statement cannot be enforced by U.S. copyright law, but there it is. Without regard to whether it is or is not a legitimate position for the copyright holder to take, you can be certain that Warner and others would not sell large amounts of DVDs to Netflix without Netflix agreeing to these conditions.