First I would say Major Nelson mentioned no membership requirements for the party outside of the host. That is about as definitive as it gets, and the Xbox home page makes no mention of said requirements either. I think what we have here is a this is too good to be true moment. Which makes more intelligent people look for the fine print.
The reality of the situation is that it is probably good advertising for Netflix and the service they provide. Get people used to watching any movie they like on demand, and they are more likely to pony up for the service. Others said it better then myself the movies and series available for streaming are not top tier titles. They are usually much older titles that have been available on standard television of a good long time.
That doesn't mean there are not gems in the selection. Just that you aren't going to be watching some new release, or something that is incredibly popular. However perusing the anime selection I still have found some good series.
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