Out of those 500 million subscribers that Facebook has, about 495 million of them have or will soon have a Netflix account as well. The fact that Facebook is even trying to compete for movie streaming is pathetic. It should just stay focused on helping people find their old friends, recently divorced ex boyfriends/girlfriends, potential one night stands with friends of friends, and the opportunity for people to show off to friends of friends about how interesting their life is. THIS is Facebook's specialty.
NFLX has over 20 millions subscribers that subscribe for the sole reason to rent movies and/or television shows.
Not one Facebook subscriber is a subscriber for that reason. Will Facebook subscribers watch Warner Bros. movies via the internet. Absolutely. However, Warner Bros. movies are already available on Pay Per View, On Demand and other website locations. Facebook has effectively added On Demand to thier site. That is pretty much it. This service has already been available way before NFLX decided to begin streaming movies and hasn't hampered their efforts.
I have serious doubts regarding NFLX business model in the long run. However, until a formidable competitor offers an unlimited service like NFLX at a competitive price NFLX will continue to dominate the market.