First sale doesn't apply because you are purchasing a "license" not a "copy". Licenses are essentially contracts through which parties can create all sorts of restrictions that wouldn't apply to copies. Top of the list are restrictions on selling the license to others, ie non-transferability.

The problem with Netflix really starts long before the consumer. With something like Black Books, which predates the netflix concept, nobody has universal distribution rights. The original creator, the BBC, long ago sold the American rights to someone else (PBS?). So there is nobody from which Netflix can purchase worldwide rights. Netflix instead purchases whatever rights they find and must mirrors them. Netflix very recently spoke out on this issue.

http://www.cbc.ca/news/business/netflix-upholds-geoblocking-...