Facebook being in "competition" with Netflix is a bit of a stretch. We're talking Warner's infrastructure serving Warner's IP using Facebook's payment platform.

You might as well say Facebook is competing with EA with games like FarmVille.

This is weird. Facebook is really becoming the new AOL. Facebook wants you to do everything on Facebook.

Hmmm, doesn't seem to be working. http://i.imgur.com/PutjB.png

It also wasn't easy to actually find and came with this odd warning "offer not valid in all states".

I wouldn't be worried (yet) if I was Netflix.

It seems that the payment processing and virality would be the two draws of doing it this way. 30 facebook credits is $3. And I guess if I watch it, it tells all my friends?

It's an interesting test, and I can see people building real apps like a Netflix competitor on top of facebook's infrastructure. I can't imagine it will work as a facebook app - the way the Dark Knight is built.

The difference is the use of facebook credits. This makes it really attractive for the user since a user can earn credits on FB without having to pay for them. So this also gives all those apps that give out free credits a boost too.

The overall experience of watching movies or videos through Facebook is pretty awful. Facebook does a few things very well, video and media beyond photos isn't one of them.