It may be of interest that Netflix is already available to Virgin Media cable subscribers in the UK in this form - channel 204 is Netflix. You put in your PIN and you have to have a Netflix account, but the video comes down the cable line just like any other channel. YouTube also has a channel. For all that people are suggesting this is a retrograde luddite step it puts the service into millions more homes.
(I should also mention that people in the UK generally don't hate their cable companies because we have loads of choice and by and large good broadband service, so I didn't see it as trying to stay relevant, just another service being offered)