This seems to be pretty close to what Popcorn Time does, and apparently does it very well. Their site says they already select individual files, so I imagine a 'sanctioned' Netflix style offering would be technically trivial to implement. This whole thing is just a reflection of the open internet/what went wrong debacle where all of this money that could be going to the content producers is instead spent on several layers of network, hardware and technical service providers that a small group from Buenos Aries has demonstrated is unnecessary if we could only, actually use, the network. But we can't.