It's happening with tv shows, so I assume movies are next -- but I don't know how the money works there. I mean, what do a few episodes of Arrested Development cost compared to an independent film? What exactly can Netflix afford? Not a movie with George Clooney in it, surely. And until then it'll be a limited market. (Hell, maybe Netflix can afford that shit -- I saw a statistic bandied about a while ago that claimed that any given evening X percentage of bandwidth is being used on Netflix streaming, and it was an insane number.)Something I've been dealing with personally is the propagation of tiny little movies that just go directly to Netflix.
It's nothing compared to porn and spam. Netflix's bandwidth is high, but considering their traffic rides on Amazon's servers, it's hard to say for sure. As to the rest of it, read this.