Netflix was awesome and basically revolutionary when it was first formed. What do you mean I can rent movies without going to the video store? That's crazy! Then it got even more awesome with streaming content. What do you mean I can just watch everything I ever wanted without even walking to my mailbox? That's crazy! Now here's the tab. Reed Hastings' Netflix has committed to paying Hollywood studios at least $1.2 billion USD for the rights to play new films streaming online.