Is it really up to Netflix to enforce who abuses its resources, though? This makes me sad, because our library is careful to pay the public display price for videos that will be shown in class. I think it's wrong for large institutions to skirt the rules like this.This reminds me a little of a program that University of Maryland offered while I was there. In an effort to keep students from pirating music, they gave us each accounts that let us download as much music (legally) as we wanted. Maybe the university could do something like subsidizing personal netflix accounts for its students?
I think Melinda makes some great points - my school never gave us an explicit policy about using Netflix but I do know a few teachers have used it. I've only used Netflix once with my students and with how slow our school's server is the audio wasn't matching up with the video. The only video I've shown this year is the teacher's edition of Donald in Mathmagic Land.