In order to use Netflix on the XBox 360, you must have a Xbox Live Gold Membership, costing an additional $5/m, (on top of the $8/m for Netflix), for the privilege of using this (free on every other platform) application on your XBox. Thanks Microsoft for taxing me for investing in your platform.
http://support.xbox.com/en-CA/apps/netflix/netflix-setup
http://forums.xbox.com/xbox_forums/xbox_support/f/30/t/15745.aspx
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