[jagsman]

I just think it would make good business sense for Netflix to make a deal with Virgin.

For example, if Virgin offer to pay them around £1 a month for every XL subscription, that would get Netflix a guaranteed income of around £2M a month. To get that same amount without a deal for XL, they would have to get over 15% of Virgin's XL subscribers to sign up. Considering the fact that only 500,000 people across the whole of the UK have subscribed to their service over the past year, then expecting to get another 333,000, from a much smaller catchment area, seems far fetched. So 2 million new customers, albeit paying less than the normal price, is a very tempting offer, especially when you see that their current total number of subscribers in the UK is only 1.5 million. It would also get them in 1st, before Lovefilm, that's got to count for something as well. Virgin could even offer to restrict their service to their set-top boxes only, as part of any deal.