I agree that it sounds like contracting. They're trying to normalize it, I think. Most people won't be contractors because contractors have to pay extra taxes, buy their own benefits, and have no job security. Netflix takes care of these first two and makes the last one softer by giving a "generous severance" while the ex-employee finds a new home (I'm not sure on the specifics of how that works; maybe a NF employee who has been "traded" can offer detail (though he's probably contractually forbidden from doing so)).