Theft results in a perment loss. Tresspassing is probably much more apt.
But, from the perspective of the online services there is a simple real world analogy that actually happens. Having 10+ people live in the same rented appartment. The lanlord is being paid, but his costs are larger than a single renter due to an increased useage of the property. Still, netflix is probably not the proponents of this law it's all about the RIAA and MPAA who hate the idea of unlimited content on the cheap.
I don't want to split hairs, but if I steal cable for a month, the cable company permanently loses the money I should have paid for a month of cable. Just because they don't lose the 1s and 0s they're selling doesn't mean there's no permanent loss.
My apartment has a rental agreement about how many people are allowed to live there. If I break the agreement by allowing ten friends to live there I lose my apartment. If I loan my NetFlix password to ten friends, I see no reason why they shouldn't just terminate my account.
There is a big difference between cable an netflix. With cable you could tap a wire and they could not notice your use sage without significant effort. With netflix they can drop any account that uses more IP's or bandwidth than they want. Basically every time they serve up content they get to decide is this a valid use of the service, and with a little IP tracking there is little to stop this.
PS: It's easy enough to say in the TOS, any account that has more than N IP's downloading movies at the same time get's blocked and it's password reset.
I agree - should have paid. People will always try to extract the last ounce of value out of anything, businesses and individuals are guilty of this - I just don't like seeing businesses using their relative size advantage to gain a legal advantage over individuals.
But, from the perspective of the online services there is a simple real world analogy that actually happens. Having 10+ people live in the same rented appartment. The lanlord is being paid, but his costs are larger than a single renter due to an increased useage of the property. Still, netflix is probably not the proponents of this law it's all about the RIAA and MPAA who hate the idea of unlimited content on the cheap.