What are the chances that this person had the DVD flipped to play the 4:3 version of the film? (Studios sometimes release pan & scan and the widescreen on the same disc, but on opposite sides).
Does Netflix source their content from DVDs? I would have thought the studio would send over some sort of lossless master file of the video which is then scaled on Netflix's side.
Uhh, I was actually thinking about the DVD-by-mail service. But yeah, an employee at Netflix could have flipped it when encoding it. But your explanation with the studio sending a master is the most likely.