Thanks to the guys over at iheartubuntu, we are now able to play Netflix videos on Linux without virtualization!
sudo add-apt-repository ppa:ehoover/compholio sudo apt-get update sudo apt-get install netflix-desktop
An easier way to watch Netflix on Linux is to simply use Pipelight
Pipelight combines the effort by Erich E. Hoover (the Netflix Desktop developer) with a new browser plugin which – unlike Netflix Desktop which requires a Windows version of Firefox to run under Wine -, lets you access services that require Microsoft Silverlight using native Linux web browsers.
UPDATE: November 7th, 2013
For Ubuntu 13.10, follow the instructions at Get Amazon Prime, 4oD and Other DRM-Protected Flash Working in Ubuntu 13.10