Too many people gets the causality wrong in the Netflix story.

The story isn't that Netflix isn't on Android because of fragmentation. The story us that Netflix will cause fragmentation on Android phones.

XBox 360, Wii, PS3 and iPhone all have strong DRM build into the platform.

Android doesn't have strong DRM in the base version, so Netflix will (or can) not support that version.

However, individual Android phones may have Netflix because Android is Open Source, so individual manufacturers may add strong DRM to the platform.

Hence, the user experience will likely become (further) fragmented because of Netflix.