If someone knew the answer to this question, the movie industry wouldn't be driving itself out of business.

They do. But they release it to Pay-Per-View and On Demand services for more money than they get from Netflix, then they get Netflix's money anyway.

They view Netflix as more of an analogue to the "TV Syndication" stage of a property's life. Until Netflix has a 'premium' club paying more for early access to new material (so that Netflix can pay more in streaming license fees), they'll continue to see it as such.

Netflix and Redbox cut good deals in exchange for those windows -- they pay less for the discs, and Netflix got expanded licensing for its streaming service. First sale rights aren't at issue. Just look at the Weinstein Company discs that announce "this disc for sale only" before the opening credits, which Netflix happily buys and rents out.