alt Hacker NewsThose things do not sound like a very big hurdle for a massive company like Netflix, in my opinion. They could simply demand a certain encoding, color and file format from uploaders. As for edge caching, not my specialty, but if Google can do it so could probably Netflix.
The most difficult part, and one that Youtube has struggled with since the beginning, would be content moderation. It's a technical, legal, and PR nightmare and there's no reason for Netflix to wade into that mess.