Unlike the games Netflix already has it's own subscription cost outside of LIVE. I originally figured Netflix wouldn't have any added costs since games like FFXI can be played by Silver members since it already has a subscription cost outside of LIVE.

Unfortunatetly this same policy didn't work when it came to Netflix.  

If people had a PS3 and a 360 for example and would have online mainly for movie watching would they spend the extra $50 a year or just do it for free on a PS3?

I know which answer would be smarter.

This has nothing to do with the games.

No, but it has everything to do with Microsoft's approach. If they're going to keep something as basic as online multiplayer for Gold members only, then I certainly think they'll do the same with Netflix.

Not when the item in question already has a subscription service.

FFXI has it's own subscription cost, much like Netflix does and only requires you to have a Silver membership to play it online. Since you already pay for the services cost already you are not bound to pay for Gold as well. It just wouldn't be fair. I am sure LIVE MMOs wouldn't go down too well if you had to pay 2 subscription costs instead of just 1.

Same here. I am paying $8.99/month for Netflix and Instant View is a normal part of the package, it has always been offered at no additional cost. Now to watch it on my 360 I must pay again?

If Netflix wasn't bound to Gold I am sure the amount of Netflix users on the 360 would be 4-5x higher than it is now.

Well, I think you're making my case for me. FFXI has its own subscription fee, and it only requires Silver. Netflix has its own subscription fee as well, but it requires Gold.

Microsoft has spoken!