I will start and write I read How can I use Netflix on Ubuntu?
It is written in the comments that there is a way to do it if you have xbox + computer with Ubuntu.
I would have done this through the xbox directly, I just do not have xbox live account, and do not wish to buy one just for netflix.
So, how do I use my Ubuntu + xbox 360 to stream netflix to my TV?
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Itay Moav -Malimovka
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Here is your answer, plain and simple for ubuntu. it wont happen without extra hardware. this blogger even explains it nice and simple for us. http://jacksonh.tumblr.com/post/965806498/how-to-watch-netflix-streaming-movies-on-linux-with
now, thats the answer for ubuntu. if you still wanted free legal software to run netflix, you would need a different linux, called chromeos. now i know a lot of people hate google for various reasons, but they do offer chromeos for download for free, and it does do netflix. heck here is another blog post about it; http://www.engadget.com/2011/07/31/netflix-plugin-for-chromeos-hits-v1-0-2-is-an-official-release/
no netflix for ubuntu, but it happens on chromeos.

DaGeek247
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Can I install it in parallel with Ubuntu? – Itay Moav -Malimovka Oct 14 '11 at 15:57
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It now possible to stream Netflix in Ubuntu http://askubuntu.com/a/219068/15943 – alfC Dec 13 '12 at 07:13