[waterhouse]

> Netflix believes that it does.

Or they believe that their media partners, who license the media to Netflix, believe that it does. Or perhaps those media partners are members of the MPAA, which wants to take a hard-line stance and never do anything that looks like backing down, even if their own technical advisors say it's getting silly.

But, yes, whatever Netflix's reasons, those who buy from them will do so under Netflix's terms.