Basically what Netflix wants to do is standardize the use of DRM technology in HTML and web applications. Currently, most "premium" content from Netflix, etc. is delivered via proprietary plugins such as Flash or Silverlight. What the new "DRM" extensions to HTML5 do is standardize the interface between your web browser/video player and DRM modules.
The DRM module itself would probably still be a closed-source, black-box piece of software, but the playing of the video would be handled by the browser natively w/o the need for plugins like Flash or Silverlight (since after decryption you end up with a standard H264/WebM stream in a <video> tag.) Now, sure, you can argue until you're blue in the face that DRM is bad, but the good thing is that you're separating the DRM from the presentation/rendering layer. This is, without a doubt, a step forward.
In theory this would make things even easier for pirates wanting to capture content since now there's a standardized way for the browser to interface with the DRM layer, decrypt the content, and play it.
The FSF's argument here is null and void because Netflix never was a free service to begin with. They never claimed to offer Linux/free software compatibility, and as a private company they have no obligation to.
The idea of separation between DRM and the rendering layer is illogical. The dream of all DRM proponents is a leak-proof pipe between the encumbered media and your senses, lest you be able to rip a perfect copy.
For a concrete example, look at how deep the content protection system introduced in Windows Vista goes.
The DRM module itself would probably still be a closed-source, black-box piece of software, but the playing of the video would be handled by the browser natively w/o the need for plugins like Flash or Silverlight (since after decryption you end up with a standard H264/WebM stream in a <video> tag.) Now, sure, you can argue until you're blue in the face that DRM is bad, but the good thing is that you're separating the DRM from the presentation/rendering layer. This is, without a doubt, a step forward.
In theory this would make things even easier for pirates wanting to capture content since now there's a standardized way for the browser to interface with the DRM layer, decrypt the content, and play it.
The FSF's argument here is null and void because Netflix never was a free service to begin with. They never claimed to offer Linux/free software compatibility, and as a private company they have no obligation to.