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Almost every state has a Sales Tax and almost every state has an Income Tax.
Netflix is providing services to all 50 states and I would assume is filing Income Tax in all of the states. Which means they should be tracking their sales to apportion their income accordingly.
While consumption taxes are taxes on the consumer they are withheld and paid by the seller. If the seller doesn't withhold the proper amount for the tax authorities they are still going to be on the hook for the tax owed.
Yes, but Netflix is an internet service. That means the consumer can be anywhere.
Whats preventing average joe from claiming he is from Timbuktu and thus not paying any kind of consumer tax?