When I started reading CNet's write-up of Roku's new Netflix set-top box , I was beginning to think that the movie industry might finally be getting its act together.

The price ($99) seemed reasonable, and the subscription rate (as little as $8.99/month) seemed about right.

After years of missteps, I thought, maybe they were finally starting to figure out this Internet thing. Then I read this sentence: "Thanks to Hollywood's byzantine licensing system, less than 10 percent of Netflix's...