We believe since we limit it to a handful of friends, and netflix doesn't prosecute users who share with friends, this flies under fair use. If we let people broadcast freely to millions, I could see how it would cut into revenues.

Currently, vidshared streaming would be lower bandwidth than the high res netflix streams, so I believe this can work like a viral marketing strategy for them: their customers can share and sell it to their friends actively now. I could be wrong though :) If any streaming service wants us to remove support, let us know!