I think there's some kind of watermarking going on, so once a rip is released to the public they can trace it back to which device keys were used to decrypt it.
It's quite easy to grab the encrypted media files, as they go over the wire - do this from two devices and compare what you get. (you don't need to strip the DRM to see if the two files are identical)
If that's just a total of a single day, 365 cheap netflix devices per year certainly isn't out of the question, especially with the number of people involved in the many ripping groups.