I can imagine it too, and I'm sure Netflix can as well. But nearly everyone making high quality/premium video TODAY requires DRM.
Edit: To clarify, if someone wants to make a service like Netflix and have it actually ship today (or any time in the near future), then yes, DRM is "needed."
I don't think the qualifier "premium" and DRM are so tightly coupled as Netflix suggests. I could imagine a universe in which premium, that is high quality content, could exist without DRM. So it's not "needed" as such. Those are weasel words.