This piece by Timothy Lee provides pretty good background.
It will take me much too long to explain why this matters to the overall economic structure of the Internet and goes way beyond Netflix. Netflix is just the beginning. But there is a depressing sameness to how this unfolds, as it mirrors what happened to the independent programming market back in the 00s.
If anyone needs me, I'll be off in a corner having a conversation with Billy Piper no one else can see.