If you watch movies on a Microsoft Surface there are not that many options other than converting DVDs to something Windows RT will play like mp4 (there is no mpeg2 support) but if you are a Netflix subscriber there is a nice Netflix app in the Windows Store.
Netflix have just updated the app which they say includes bugs fixes and features (but they don’t say what the features are). I have been pretty impressed with the app running the Surface it’s got modern feeling UI design what works well with touch.
If you’re a Netflix subscriber get the app from the Windows Store
In this update, we added features and fixed bugs.