In Chrome Book the movie runs in Ram and gets nowhere near the hard drive. The hard drive is only 16GB and a movie would fill like a ¼ of it. The movie only running in Ram is the beauty of Chrome Book making it a nature media for Netflix.
That may be true, but if Netflix can't be sure you're running a chromebook and not a desktop pc with an enormous disk, torrent server and chrome browser.
“The encryption for movie playback, together with advanced stuff like automatically switching the stream quality based on your connection speed is hard and not in the HTML5 standard.”
If I can embed a PhP site running a server side SQL data base into a virtual seamless window running with HTML5; I most certainly can embed ““The encryption for movie playback, together with advanced stuff like automatically switching the stream quality based on your connection speed in to the HTML5”.
I'm sure it is possible, and I'm sure netflix and others are working on it, but it is not as simple as using the <video> tag. Correct me if I'm wrong here, but that <embed> tag in your earlier example is a reference to a JAVA object, no? JAVA doesn't work on Chromeos.
The only downside to all this is: the going rate of wireless cellular data is about 10 dollars a gigabyte up to 5 gigabytes after which thing start getting expensive. Thus Netflix may block movies to be run on wireless cellular connection, but allow them on a unlimited WiFi connection.
Not to long ago some Kid racked up a 20,000 dollar bill in one month, on his cellular account, watching movies.
Ha ha - that's not Netflix's problem. It's yours. They have no way of telling how much your connection is costing, and no interest in finding out. The only thing they can detect is the connection speed, and adjust the quality of your stream to suit. Managing your internet billing is your problem. Managing your child's internet billing is your problem too.