Looks like Netflix is running into a brick wall trying to get download rights from studios. Personally I think they would perhaps have more luck going into niche markets first – like anime, adult, sports, perhaps TV. Deal with the smaller studios that are more open to new distribution, prove it works, then woo the big boys. For example, ADV Films, one of the largest, if not the largest, anime distributors in the US has used BitTorrent to serve free episodes of some of the shows, to let people check it out and boost DVD sales of the series. A lot of these companies were the first ones to jump on DVD, and the first to completely stop producing VHS (some anime companies went DVD-only years ago). They’re not technology adverse like the big studios.
I spotted the article via ZatzNotFunny